Year: 1879

We very naturally regard the funding OF
our national debt at a lower rate Of interest
with feeling of satisfaction, for in that the
Government saves money, and so far the
people are relieved, for they must ulh-
mately pay all this debt But there is an.
other side to this question which very seri-
ously affects the business interests of the
country, even to Oppressiveness. The fund
ing of our debt at home, instead of abroad,
wears n patriotic charm. 1t tells the world
of our vast resources and inspires n feeling
of national pride when viewed abstractly.
But when we consider that question in all
its relations and bearings it beclouds the
roseate tints that flush upon il at first sight
The vast amount of American capital which
is now seeking inyestmentin our 4per cents
takes Just so much from the marts of manu-
features, trade, and commerce, and Just so far
crpples these agencies of the prosperity
and wealth Of the American people. Every
million that finds investment in these
bonds, which are carefully laid away be-
yond the reach of the tax gatherer, with
| their yielding coupons, becomes dead to the
business interests of the country. 1t dis
appears from circulation, and is inert to the
active industries of life. This is the other
side, which does not dazzle with brightness
and hope.


1t is not possible to transact the business
enterprises of the people without capital
Ready money is the moving power of busi-
ness-hence without it Of necessity it must
languish and finally die. The want of it
and when it is funded in our bonds it
ceases to be ayailabe-becomes the mill
stone that hangs upon the neck of trade,
commerce, and manufactures, So far
rs our domestic interests are concerned
! it would be far better to have the money
come from and the interest be paid to for
| cign capitalists for so long rs incomes are
unta xed it would be far more desirable TO
have their money tied up, and ours left free
! to foster the general interests Of American
enterprise and industry, We are pleased to
see our debt funded AT Il lower rate Of inter
est for that is full Endorsement of Ameri-
can credit; but we pay dear for this circum-
stance when our business interests languish
for the want of ready capital with which to
push its various enterprises.


One fact is apparent, With resumption
upon us, involving an equalization of the
values of our currency, and this constant
drain for investment in our bOnds-the
scarcity of money Is more severely felt by
our business interests than at any
previous period for many years,
and unless the threatened caami-
ties are averted by some propitious


financial interposition the worst estate of our
people has not yet been reached, Itispecu-
liarly unfortunate that the heavy draft upon
the money capital Of the country for fund
ing our debt should occur simultaneously
with resumption, for it tends greatly TO cir
cumscribe the facilities and enGouragemcnts
of general business by Withholding from it
the means which are indispensable to its
advancement and prosperity. The money
thus invested ceases to be Of the slightest
utility in extinguishing our Indebtedness,
except the difference in interest, for not only
the principal, but the interest is free from
taxation for that purpose. We are appre-
hensiye that the tendencies in favor OF the
privileged classes in our country are stronger
than is good for either national or indiyid-
ual welfare.