Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-12-03
The Debts Of the Nations.


nishes striking evidence of the SOUND
financial credit of the two powers
which are carrying on the great war IN
Asia. Russia's new bonds bring the
same price as those issued last spring,
before il had met great rerer-ses on lana
and sea. And this in spite Of the fact
that Russia has "A national debt ap-
p-oximating. if it does not exceed.
a. 800 900 n00-a debt exceeded only by
IN spite Of these circumstances. Russia
is apparently able 10 float large loan
abroad on as favorable terms and con-
di,ions as she fioated a similar loan
few months ago. before those adverse
circumstances arose. Still. there ~
nothing mysterious or remarkable
about the confidence that European
tiuanci.rs display in Russi;ls financial
snundness. Russia natural resources
..r.. enormous in extent the surface Of
which has Only been barely scratched,
So To speak: sH. derives an immense
r. vcIIu.- from government n"nop"lleS;
She. ms made rapid progress III manu-
featuring; her monetary system IS
based on gold while her volume "f p,I-
p,.r circulation is comparatively small;
= large part Of her national indsbtcti-
MSS represents money that has S"n"
into public works like the Siberian AMI
other state RAILWAY lines; and the i'm
p.rial government is extremely jealous
Of its good faith with foreign creditors.
III. New York Commercial is au-
thority for the statement that these
bond issues by Russia and Japan. in
cr.as.. the national debts of the world
most Trustworthy estimates. the worlds
national debts aggregated s., 500. 900. 900
onic vars The Commercial declares
that whatever the faults of the old re-
gimlr. vher, mouarChS fought for glory
or d!uastic advantage. loading their
subjects with debt was not one of them.
Frederick Tough. tbs seven years war.
y h..n M continental Europe Was at his
Il -nat. without borrowing. Louis XIV,
.lthough H.. exhausted France, did not
mortgage the future. The era of debt
creation cam" in with Democracy.
From l1r3 {" AS the increase OF the
worlds Indebtedness. although fifteen
of the years saw continuous war. WAS
from 81 500 .0op,0D0 To {S.50o.o0O, O0". Or
IN average II approximately 100000.
900 par ;innum. From ls4S To the pres
ont. th" distinctiveIy Democratic peri
| ni, the increase WAS from $500. 0oo. 900
! t" 49, 500. 900. 900, or AT the rate Of
$41I 900. o"o per annum. In the old
Gays. when the people We're not asso-
cjatei With the government. they re-
VOTED against burdens which, self i'm
posed. they chr.rfully carry.
! Thus. according To- tn. New York
!
Commercials figures, national debts
, hav. increased LOO per cent, while
population has increased only $50 per
cent. But in reckoning debt paying
! power perhaps wealth rather than
population is tn" test. and in the last
century the visibl" wealth of the world
! increased ten-fold. while the interest
/ rat" on national securities has been cut
| in two. II is thus possible to claim
| that tn. interest charges now TO be met
ar, relatively less Durlcmsome than
those Of tn. beginning Of TIN. ninc-
t"enth century. But il also must he
born. in mind that present day taxa
ton is almost wholly on consumption.
n.nc-t.nhS or more is Immediately tx
| pended. while greater. ar. not five
ago. In 1870. TO- example, tn" annual
| interest charge on the then debt Of
| France. ($SAa. coo. 5000 VAS about sl2J
per capita while on tn" present debt Of
S5.S0oooo,ooo it is SIS Reckoning thu
average French family III four and the
average French family income III $500,
! ii appears that per cent. Of each in
com" goes to meet the interest on the
national debt. Doubt naturally arises
as to whether the people of France. are
capable of carrying a much greater
burden. If the. interest continues to b.
paid. will it ever be possible to dis
charge the enormous PRINCIPAL" And
what is true of France is true Of other
countries of Europe. Happily the ma.
tional debt problem In this country is
lot one to cause any worry
Good Example for the South.
The Southern people are. first Of all
| American h.,,-. -.