CHAPTER XX. MUNICIPAL DEBT. In an address upon Municipal Debt, Mr. Blaine reviewed the history of these encumbrances, in all lands, and then spoke of the debts incurred by nations, states, counties, and cities or towns. These forms of public debts, he pronounced a "quadruplicate burden" to carry which every man and every piece of property, in some way must contribute its share. "When the city is pledging its credit," said Mr. Blaine, "it seems to forget that a heavy debt is already upon the county of which it forms an integral part; the county freely incurs debt without apparently remembering that every estate in it is already encumbered by a direct tax to pay the interest on a debt of the State; and the State too often makes lavish use of its credit without pausing to reflect that every one of its citizens is already burdened by the tax which he is paying to liquidate the debt of the nation. And when in the end nation, and State, and county, and city have each and all imposed their burdens, the citizen finds that while the tax is increased fourfold, the property to meet it has not expe rienced a similar development and growth." This power of indefinitely contracting municipal debt, was amply illustrated, and its folly scattingly exposed as the orator proceeded. In approaching the practical conclusions of this whole matter, the distinguished speaker said: "In regard to the aggregate Municipal debt of the country, it is not of course to be inferred that it could all have been wisely avoided. Credit, prudently used and safely guarded, is one of the great engines of modern civilization and advancement, and with Municipal Governments its uses at times seems imperatively demanded. In many cases the public health has required that debt be contracted for supplies of pure water and for systems of drainage and sewerage, and occasionally for other forms of public improvement essential to the growth of the community. But in the main, I think our cities have been too ready to draw on the future, to ready to pledge the 'lives and fortunes' of posterity to the payment of a debt which the generation contracting it is unable to discharge. Expensive Municipal buildings, loan of credit to outside enterprises, not needed and often visionary, have led in some large cities to a growth of debt for which there is no corresponding return of pecuniary profit, and no adequate advantage in any form. It is so easy to obtain Legislative authority to contract debts; it is so easy to sell a good city bond to the capitalist who highly prizes such forms of security; it is so easy to roll up a debt to be taken care of by those who come after us, instead of levying a severe tax to be paid by ourselves; in short, it is so easy and, alas! so natural to have a smooth, enjoyable time to-day, thinking little of the ills that may overtake us on the morrow." The influences of such debts in diverting capital which might otherwise be actively employed and in unreasonably advancing the rate of interest were next discussed, and thus the way was prepared for the question, what is the remedy? To this query Mr. Blaine gave answer as follows: "First and foremost, an awakened, active, wellbalanced public judgment, which will suggest, demand and enforce a wise caution and conservative course on this subject. I have no patent remedy to propose, and yet I venture to suggest that the Legislatures of many States have altogether too large a power to create debt without referring the subject to the people for their primary consideration. Perhaps I may entertain a pre-judgment on this particular phase of the question in favor of the stringent provision in the Constitution of my own State, where the Legislature has no power to incur a dollar's debt except for war purposes, under the pressure of actual danger, and where an amendment to the Constitution proposed by two-thirds of the Legislature and then submitted to a vote of the people, is a pre requisite for pledging the credit of the State for any other purpose whatever. "It might also be a wise and salutary provision to define in State Constitutions the precise ends for which municipal credit should be used-limiting those uses to proper and restricted objects, and forbidding in any event the creation of a debt beyond a specified per centage of the official valuation of the city or town; providing at the same time a judicious safeguard against the overlapping of county debts, so that while the town was guarding its credit with care it should not be involved in the embarrassment caused by an extravagant extension of the credit of the county. "And finally, as a governing principle, it would be well to apply to all State, county and municipal debts, the wise precaution contained in that famous and well-remembered rule laid down by Mr. Jefferson as the basis of all sound national credit: "Never consent to borrow a dollar without laying a tax at the same instant, for paying the interest annually, and the principal within a given term; and consider that tax as pledged to the creditors on the public faith. On such a pledge as this, sacredly observed, a government may always command, on a reasonable interest, all the lendable money of its citizens; whilst the necessity of an equivalent tax is a salutary warning to them and their constituents against oppression, bankruptcy, and its inevitable result, revolution.' CHAPTER XXI. IRREDEEMABLE PAPER CURRENCY. ON the money question Mr. Blaine stands among the soundest and most advanced financiers, and has always stood there. In addition to illustrations already given of this fact some points may be cited from his speech on this subject, which was delivered in the House of Representatives, February 10th, 1876, a date prior to the resumption of specie payment in our land. The financial situation of the day was thus stated in the opening paragraph of the speech: "For more than two years the country has been suffering from prostration in business; confidence returns but slowly; trade revives only partially; and to-day, with capital unproductice and labor unemployed, we find ourselves in the midst of an agitation respecting the medium with which business transactions shall be carried on. Until this question is definitely adjusted it is idle to expect that full measure of prosperity to which the energies of our people and the resources of the land entitle us. "If," said Mr. Blaine as he proceeded on this topic, "there was any one principle that was |