Evening star., 1921-09-04

point Of recuperation. The history of modern
civilization shows that almost invariably a ma
tlonal debt has acted a stimulus to the crea-
ton OF new wealth. and despite the oppressive
ness of temporary burdens has resulted in an
increase in national prosperity and better
ment In the general standard Of living.
And the rule seems to hold whether the debt
has been owed externally or internally 1t Is
recognized as matter of course that public
debt owed internally-that is. where the people
OF nation are the creditors Of their own gov
ernment-does not represent any dimnution Of
national wealth; but instances not lacking
where the effort necessary to the paying Off of
an external debt has resulted in the permanent
increase In the prosperity of people. When
Bismarck imposed an indemnity of billion
dollars on France at the end of the Franco
Prussian war he thought he was crushing the
French people under a hopeless burden. and
that Prussian troops would garrison French
fortresses for generation. But, to the disap-
pointment of Bismarck and the amazement Of
the world. France paid of the indemnity with
out any seeming effort. and the resultant de-
velopment of her resources, despite loss of the
Iron mines of Lorraine, left her richer and more
formidable than she before Napoleon III
risked and lost his throne on the hazard Of war.
X X \ X
Predictions Of ruin and bankruptcy as a re-
suit Of national debts have been heard since
nations first began to borrow money but of all
there is not one the downfall of which can be
attributed to inability to meet it's financial OBJ
legations. There have been few instances
where minor nations have repudiated their
debts and continued a miserable and disgraced
existence. but these states were Of such meager
consequence that they are hardly worthy to be
cited as exceptions tending to prove the gen.
eral rule.
No people have been more fearful Of the
consequences Of debt. and people have
thrived more greatly while getting constantly
deeper into debt. than the Inhabitants of the
British 1sles England contracted her first
tional debt in 1893. during the reign of William
and Mary The war with Louis XIV of France
had been going on for a number Of years. and had
been going on badly for the Prince Of Orange.
Finally. at the end Of the campaign Of 1892.
England and her half-hearted allies had been
defeated at Steinkirk by Luxembourg, Louis
huhchbacked but brilliant marshal. and the
future looked dark. not only for the house of
Orange. but for the Protestant cause through
out the world Williams allies were for max
that only by the payment of large subsidies-
which was the name under which bribes were
given and received in those days-could they
be persuaded to take the field again.
Parliament. fearful Of a French invasion
which would restore James to the throne Of
England and send Protestant heads rolling from
the block, was willing to do the bidding of the
sovereigns. but when the land tax had been In
creased to four shillfngs in the pound and
heavy impost and excise duties laid, the esti-
mated revenues still were far short Of the re-
quirements and the boast Of the French king
that the last piece Of gold will win" did not
add to the happiness in England.
X X X
In this desperate emergency. the lords Of
the treasury proposed and parliament voted to
issue a loan of million pounds sterling. The
loan was subscribed almost overnight. for the
war profteers Of those early days had few op-
portunities for safe investment Of their sur
plus wealth. and there was considerable agita-
tion in favor of confiscation Of boarded gold.
The hnanciers and economists were agreed
that the loan must be paid OF speedily as
possible, once peace had been achieved and the
established government made secure for such q