Aus:
The Economist, 26. Dezember 1868. S. 1470–1472.
Schließen

Rates charged in Ireland on a main line.

Aus:
The Economist, 26. Dezember 1868. S. 1473/1474.
Schließen

The Difficulties of American Finance.

Johnson, the President, in his message: proposes to pay off the debt and interest, by paying the interest alone for 161/2 years.

By Act of Congress of 1867 adopted against the open remonstrance of the Secretary of the Treasury, a large part of the internal revenue was sacrificed. No deficit yet, but the process of diminishing debt arrested.

At this rate of surplus it would take a very long time indeed before the American Debt was discharged. But the real situation not so good as this. The law which diminished the resources of the Treasury was not passed till 31 March, ’67. Its effect will be only seen this year. What that effect is may be gathered from:

He expects a small surplus, by estimating the expenditure at £50,422,000, which is a mere hypothesis.

The Situation made still plainer, if, as Secretary does, observed the:

Descent from 46 Mill. £ to 20 Mill. in 3 years is very great and upsets every calculation. Partly there are great difficulties in Collection and the complaints of the Department are very loud; but partly also, as by the measure of last year, part of the war taxation deliberately thrown off by the American people. Still the pressure of the remaining taxation is still severe. The yield of the Customs has been stationary.

This is not the statement of a progressive country. Probably the increasing skill of smugglers keeps the revenue down and hides the real progress made – the tariff likewise growing more and more prohibitive; but there is also great depression, as the complaints about ship building and other trades prove.

American Industry suffers because of an irredeemable currency, which causes fluctuations in prices and consequent uncertainty in performing contracts. McCulloch wishes to get rid of this irredeemable currency, suggesting last year the contraction of the currency till it equals gold in value. That suggestion was scouted. His idea now is to make contracts to pay in coin, as well as „in lawful money of the U. St.“ permissible. In practice it is hoped this would lead to the abandonment of irredeemable paper.

The interest of the debt is out of all proportion excessive when the position and resources of the State are considered. It would be a great gain to pay less. But credit of U. St. bad, mainly through fear of repudiation, especially through the fear that the principal of certain debts will be paid off in depreciated currency. McCulloch verlangt daher a declaration of the Legislature, that the principal shall be paid in „that currency which is alone recognised as money in the dealings of nation with nation.“ It is the height of folly to go on paying a burdensome interest for 17 years for the sake of paying off a smaller sum in principal at the end of that time. Repudiation loans in the future.

Johnson, in his message, directs attention to the circumstances under which high rates of interest were agreed to. He dwells on the huge profits of the capitalist who holds obligations for 300 and 400 P.Ct. more than the U. St. received. He represents America as paying tribute to the foreigner, and national debts as characteristic of monarchies.

Even McCulloch speaks quite frankly of the people of the West being „more sensible of the burdens of Federal Taxation than are those of the Eastern States“, because few bonds are held in the former.|

86

The recent declaration of the House of Representatives passed in consequence of the President’s proposition:

„That all forms and degrees of repudiation of the national indebtedness are odious to the American people, and that under no circumstances will their representatives consent to offer the public creditor as full compensation a less amount of money than that which the Gvt. contracted to pay him.“ … this does not settle the grave doubt about the 5-20’s – the dispute as to what money, whether coin or greenbacks, the principal is to be paid in.

Aus:
The Economist, 26. Dezember 1868. S. 1477/1478.
Schließen

Paternal Landlordism.

M. A. Shelton (dieser case a few days since before the Birmingham Bankruptcy Court), having become bankrupt, applied to pass her last examination and for an order of discharge. She was somewhat sharply examined by her assignee, who, as her and her late husband’s attorney, had become her creditor, as to her disposal of some ewes and lambs, and some cows, which it appeared she had given to her children. Paternal system of landlordism in the Midlands. Her husband had died some time ago, and since his death she had been struggling to maintain her family by the occupation of the farm. „We were there 40 years”, she said, „and we did everything – buildings, gates, and everything on the farm; for it was like an uninhabited place when we went there; and we never got a farthing for all we had done. My poor husband said on his dying bed: I am sorry for you. I have been working all my lifetime for the Squire, not for you and my family“. Those were his dying words.

She said: „Only 6 years ago all the land wanted draining and we had to do it all, except just putting the tiles in. Then my poor husband lay ill 11 weeks, and we never had the least transactions of any kind, and I had to sell my beasts and pay some debts directly after his death. Then I had half a years’ rent and above 170l. odd to pay. I was obliged to sell my stock and I paid all that off. Then at the latter end of the year I had another rent to pay, and then they sent me out of the farm without a farthing for all we had done upon it. There was not anything in the world on it but what we built ourselves – we improved the land as well as the building. We built a lime-kiln, and we bought all the manure round that ever we could get … . After the death of my husband it became time to sow turnips and oats. The landlord said he would enter an action against me if I sowed oats, and I did not do it. He said he would take the ploughed land to himself at Michelmaas, and I did not expect to pay rent after that. He took the ploughed land at Michelmaas, and charged me with with rent to Ladyday.“ Und wegen dieser lezteren rent after the land was given up, erzwingt der Squire noch adjournment des Verfahrens vor dem Bankruptcy Court.

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