Year: 1875

The advantages of good credit, founded
on high character for commercial honor,
important in all countries, are incalculable
in country of immense undeveloped re-
sources like ours. There is no other country
in which the material basis of solid credit is
more unquestionable, but the capitalists of
Europe are fast coming to the conclusion
that the moral basis is wanting. Mere ability
to pay is not sufficient to secure confidence,
unless accompanied by disposition to deal
honestly with creditors. The swindling
management which has prevailed III several
of our railroad and mining companies has
been great blow to American credit 1t
will be many years before the frauds perpe-
trated in the name of the Emma Mine, the
Southern Pacific Railway, the Northern Pa
cihc, and the losses incurred by the holders
of Erie stock, will be forgotten. There are
even more powerful causes which bring for
eign capitalists to a stand and repel them
from American investments The West
ern crusade against railroads and the
laws passed in Wisconsin virtually confs-
eating railroad property make it dangerous
to own such property until the question shall
have been decided by the federal Supreme
Court whether the individual States can fix
rates of fare and freight at their pleasure,
and annihilate the value of railway bonds by
depriving the roads of their resources for
paying them. In the eyes of foreigners,
what is possible in one State may be prac-
tised in all or in many, and if popular out
cry against railroad charges can be made
effective in legislation and if the federal
courts leave such property to the mercy of
the States, foreigners will shun American
railroad securities. The Western crusade is
over for the present. the pretexts for it hav-
ing been taken away by the recent railroad
war, which reduced prices by ruinous COM
petition, also calculated to deprecate such
property. But there is no security against
similar outbreaks of popular feeling when
the roads shall again charge remunerative
rates The initiation agitation in Ohio also
tends to undermine confidence, for if the in
fationists should get possession of the fed
eral government no foreigner who has given
credit in the United States can expect to re-
cover more than a fraction of his property.
Foreigners can sue in our courts, but they
can collect their dues only in the currency
of the country and when this has been rem
dered worthless by initiation the enforcement
of their rights by the courts will be a shadow
and delusion.


The fountain Of all this discredit is the
action of the government, which has blunted
the conscience of the people and debauched
their sense of moral obligation. 1t is the
government which is educating the nation in
knavery. When the government declares by
statute that men may repudiate great part
of their debts; that people who borrowed
money consisting of dollars worth hundred
cents may lawfully discharge the obligation
in dollars whose value has varied, at differ
ent times, from thirty-seven cents to ninety,
it is not to be expected that a majority of
citizens will retain a clear and steady sense
of right. When the cheating of creditors is
thus authorized by the law of the land,
when all stable ideas of value are confused
and upset, when the people are taught by
the laws that paying back less than they bor-
rowed and promised is consistent with hon
eSUy, IL ls 10 WOnuer CnaJ UnICeeH years OF
such education has lowered the tone of general
morals and difused rascality and rottenness
through so many Of the walks of public and
private life. The most important step to-
ward re-establishing that moral basis of
American credit without which our great re-
sources can inspire no confidence is the re-
turn to a currency which is not on it's face
a lie