The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-13
MIR. BRYAN'S NEW DISCOVERY.

Almost everybody has heard the para
doxical saying that "a public debt is a
public blessing" and strange As it may
seem there is something esembling a
germ Of truth in it. A public debt repre-
scented by government bonds offers a safe
investment which makes every individual
investor a stakeholder in the government,
and therefore personally interested in
its welfare and solvency. In this
way it is, in a sense, a pro-
moter of patriotism. Early in the war
Jay Cooke issued a pamphlet entitled "A
Public Debt a Public Blessing" in which
this idea was presented very ingeniously
to induce people to buy government bonds.
1t is a good enough idea to enforce while
a debt is being created, but it is not half
SO plausible or captivating when the debt
comes to be paid. People who are taxed to
pay the interest and principal of a public
debt are not apt to think it a public bless
ing.
Blu a later discovery in finance, quite a
new one, in fact, is that a treasury deficit
is a blessing. This discovery has been
made, and the fact announced by that emf
nent apostle of the Nebraska school of
finance, Mr.. William j. Bryan, late can
didate for President on the 50-cent dollar
platform. Mr. Bryan has not much to do
now but to think out great thoughts and
keep himself before the public by promul-
eating them from time to time, and he
embraces every opportunity to do SO. A
few days ago Mr.. Dingley, chairman of the
ways and means committee, made a state
ment showing the superiority of a treasury
surplus over a deficit and the advantage
of an abundant revenue as a means of re-
firing the greenbacks and reducing the pub
lie debt. 9TH difficulty of the past four
years. he said, has been that we have
had a constant deficiency, amounting to
over $500, 600, GOO, or $50. 600, 600 per annum, and
to meet this deficiency the greenbacks pre-
scented and redeemed have Immediately been
paid out again, thus placing them in a po-
sition requiring a second and even a third
redemption. Thus as a matter of fact, while
we nave borrowed about $293,00 o 900 by
issuing bonds during the past four years,
ostensibly to maintain the gold reserve, yet,
as a matter of fact, over 500, 900, 900 of that
has in the last analysis been borrowed to
meet the deficiency of revenue, and only
S93 600, 900 to maintain the gold reserve" Mr..
Dingley showed very clearly that the de-
fciency of revenue was largely responsible
for the distrust which caused a run on the
treasury, and that if the revenue had been
sufficient to meet the current expenses of
the government the greenbacks once re-
deemed could have been held in the treas
ury and the demand for gold would soon
have ceased. He added:
Unquestionably, If we can now secure
abundant revenue to meet all expenditures
and leave a small surplus TO gradually re-
duce the principal OF the war DEBT. there
will be little anger OF any serious pro-
longed presentation of greenbacks for re-
demption. Not only because the fact that
we have a solvent government Will aid in
maintaining confidence and the credit of the
government, but also because every one
will recognize the fact that the government
will be able to hold greenbacks redeemed
so long as there is a endency for a run on
the treasury. 1t is for this reason that the
revenue legislation now pending, designed
to secure sufficient revenue TO carry on the
government. Is of itself a fundamental step
in maintaining the credit of the government
and aVerting any danger OF a depreciation
of the currency.
Mr.. Bryan could not lose this opportunity
of reminding the public that he still lives,
and he is out with a statement antago-
MIXING Mr.. Dingley's views. He says the
deficit in the treasury did not cause the
issue OF bonds. This will be news to those
who used the proceeds of the bono sales
TO made good the deficit. but, surprising as