THE COLONIST PUBLISHED TUESDAYS THURSDAYS, AND SATURDAYS NELSON, TUESDAY, OCTOBER 5, 1880. AMERICAN DEBTS.

Colonist, Volume XXII, Issue 2765, 5 October 1880, Page 2

THE COLONIST PUBLISHED TUESDAYS THURSDAYS, AND SATURDAYS NELSON, TUESDAY, OCTOBER 5, 1880. AMERICAN DEBTS.

Though it is now fifteen years since the great civil war in' the United States was brought to a close, it is only a few months since a complete statement, of the expenditure by; that part of the country thatiwas ultimately ,7 victorious has been published. iThe compilation shows also the'outlay that I. tag .sjnco., been borne by the TJnion ,as ,,. j restored, and the success that, has ai-j. ; tended the efforts to. reduce >tnede.bfc.(, I incurred by the Northern, States^ to v I which thewholfr have, sincepea'ce was"' t re-established, been required to contribute. As a record of one of the greatest and certainly one, of, the most expensive wars' ever known, the information must be universally interest, ing, but it is much more son to alls; English-speaking communities, 'aSrshowing' the financial trials' that 'the ' most populous of such States '"'Has' 0 gone' through, how it dealt with and;overcameijthem, and the course,it has v taken with respect to its enormous./ burdens. Including the interest t on that part of the piiblia Seb'tithati'was raised to.icarry »ni the;-struggle, the war and-its-subsequent expenses-ab--gorbod. more than' twelve hundred ijaillioa pounds during the eighteenyears, from Ist July; 1861, to lat,July, 1679, or considerably more than,}^ fifty per cent in excess ,of the: entire / national debt of England. The largest : sum actually owing at one time was';' on 31st August, 1865', when it ex- } ' ceeded five hundred and fifty million ' pounds,.and in consequence of the high rates that had to be paid, the annual interest was above thirty : million*..'' '- ■ ' .f' .: ! If the imputations of dishonor and - a to repudiate obligaitiohs^ that there were no means of enforcing, that were continually made during the • war, had, been, will Jfoaqded,.the story would now be, that this enormous debt still remains untouched/and that the 1 , deluded creditors1 have' been starving; *~ 1 at'a,|naturar'result of..cohfidJDg'iri'a government -, elected, by. fche^ ; un"qqnr; (trolled .wellv,of; jtsj peopje. Popular 'ipstikiitiofifbjihAve, however, produced none of the disgraceful failures to • mot the wtioau obligation! that

llftVe ruined many who trusted some of the European States. Leaving- out of account the barbarous Tutk, Who retains in full force the predatory"; in*' Btincts of his ancestors* the proud and chivalrous Spaniard has not dißdajned to offer compositions, nor^ when tpfese were in despair accepted, .to .withhold1 the stipulated dividend. On Ist July, 1880, the debt of the Great Eepublio had been reduced by more than one hundred and twenty-seven million pounds actually paid off, and in.addition to that vast sum, the .Treasury now holds above forty millions more and is buying up bonds at a premium to cancelfor the Sinking Fund. This resolute effort has had the effect of not merely saving interest; on -the amount of debt redeemed, it. has even, more largely lessened the pressure of that yet unpaid. As the securities bearing a hip h rate of interest matured, the improvement of credit enabled such re-boi-rowing as was needed to be accomplished on terms so much more favorable that the annual charge- is now brought down to six teen millions,, with the certainty that when in, eighteen months. something like Half the existing interest-bearing debt,'that jdow pays 5 or 6 per cent, becomes due, a further immense saving will be made, the amount of which • maybe estimated from the fact that 4t pe,r cents now stand at 108£ in New York. The expression " interest-bearing (debt" requires explanation. , During the war tbe Government established a oational banking system, and in various ways its notes have been made to .entirely supersede those of'the State banks. There is thus at present about i seventy-eight million pounds of currency without interest, and as all the. national bank notes and greenbacks are now maintained at par; the amount' may be regarded as practically extinguished as a debt; certainly with the rapid advance of the country there is so doubt that as much or more will jdwaja he wanted, and therefore be kept afloat. It will most likely be objected, that during the war :- these inconvertible notes did not bring their nominal value in gold. That is true; but because it is so, no special or exceptional reproach can justly be made against the United States. When the United Kingdom was engaged in the great continental war, and the Bank of England was authorised to suspend ©ash payments, the most severe penal laws were not sufficient to prevent large premiums being secretly given for goid. All concerned in the traffic ran the risk of prosecution, and yet though from the transactions being illicit the profits exacted by the dealers in guineas were excessive, a large per centage was freely paid as premium to the lucky possessors of gold coin. An "ignorant impatience of taxation " is often said to be a leading characteristic of countries governed oh the principles of pure democracy. Tbe United States most assuredly do not bear out this assertion. That taxation of extraordinary severity was submitted to while the war was raging might be accounted for by the .passion for victory that everywhere prevailed, but that will not explain the continued acquiescence in demands far in excess of what the payment of interest and the maintenance of the ordinary establishments called for after peace was won. The country was said to be exhausted by tbe prodigious exertions and sacrifices of blood and treasure t tat bad been made, and some breath* ing space might well have, been asked for before the reduction of the debt was attempted. Though the army and navy were speedily cut down, and remissions of the most oppressive taxes were, made, this wag not permitted to proceed so far as to leave the revenue only equal to tbe expendi-, ture. Every year a large surplus was secured, and if part of the population were impatient, tbe majority supported the Government in preserving a sufficient iucome to provide for wiping o^t the obligations of the war at a rapid rate, i'his process, so little expected, by the enemies of free institutions, is still going on, and with the marvellous increase of population that is at the game time exhibited, the debt and the taxation per head is becoming comparatively insignificant.: The precise numbers inhabiting the United States are not yet ascertained, but the Government estimated its people on let July, 1880 # at 50,858,00.0, ,aad distributed among them, the debt amounts' per head to £7 17s, and the charge for interest to bis shillings and sixpence. A moment's reflection, at the same time remembering our debt and in*' terest, ; will suffice to convince the most obstinate revilers of the United. States how easily this can be borne; as the sums paid oft since the war, and the taxation endured to find the means! for so doing, ought to satisfy them, that when the people direct the ex-. peoditure of money, they will be prepared to burden themselves heavily: to that the national honor may be preserved unstained, s , - .: <•'* .>

Sebtiob oj aoNa.-i-Tbe J 'public are ,re-' L minded of the Service of Song—subject, Bart's Joy^-al the Congregational Church/ this' j evening. • THB ANCHOB SIBAMBBS, FoUIfDBT, belt will be seen by advertiioment in this istue that in order to realise the property of the late Mr John Symons tenders are now invited; for tbe purchase of tbe Anchor line of stesmsri, together with tbe ketch Ocean Bird and bulk Hera; of the lease of the Albion Wharf and freehold lands j and of the Anchor S|ojund,ry, ; with machinery, plant, &o. (Although tender* will be received for the* whole property as a going'concern or for separate lotß,..waieartilj hope to see this valuable property purchased,: in tact by local capitalists, and that NelsoD. will lloog remain, the head^quarteri of tie