4i 6 



THE POPULAR SCIENCE MONTHLY. 



ent forms the debt may take, floating debts 

 should be but sparingly used ; voluntary 

 loans appeal to the only reliable motive on 

 which to rest a credit policy ; bonds are 

 preferable to annuities ; and while Govern- 

 ment may use its discretion in fixing times 

 of payment, loans should be placed at par 

 rather than at discount. At the close of a 

 war, floating debts should receive immedi- 

 ate attention, and a policy of contraction 

 should be set on foot to meet the case of 

 irredeemable paper notes. In peace man- 

 agement, the financier should have regard 

 to the need of investors in giving shape to 

 the public debt ; should be able to work wise- 

 ly when he comes in contact with the money 

 market, and harmoniously with all laws af- 

 fecting or affected by his securities ; and 

 " should have clear views respecting the 

 policy of conversion." The policy of debt- 

 payment as opposed to holding on till the 

 indebtedness is overtaken by the growth of 

 the country in wealth is defended, but it 

 should not be pushed so rapidly as to force 

 the rate of business profit below the rate 

 necessary to sustain industrial hopefulness. 

 The best method of payment is that of mak- 

 ing permanent appropriation to the service 

 of the debt, leaving the administration large 

 discretion in its application. 



In the third part " Local Deficit Finan- 

 ciering " a review of the past experiences 

 and present condition of the States and mu- 

 nicipalities in financial management leads 

 up to inquiries into the causes of municipal 

 corruption, and the expediency of limiting 

 the power of cities and States to borrow 

 money. Municipal corruption is regarded 

 as merely a symptom of deep-seated disor- 

 der in the body politic, and not a distinct 

 aud independent evil. The final explana- 

 tion of the phenomena is to be found in the 

 fact that the present organization of society 

 does not properly correlate public and pri- 

 vate activity. Private business and the serv- 

 ice of corporations offer more attractive ca- 

 reers than municipal office, and secure the 

 service of the best men. The remedy for 

 corruption is, then, to enlarge the scope and 

 legitimate emolument of municipal life, so 

 that the best men may also be attracted to it ; 

 and this should be supplemented by the en- 

 forcement of personal responsibility. While 

 the evils against which the restrictions of 



the freedom of States and municipalities in 

 financial and industrial matters have been 

 directed, arc acknowledged to have been real 

 evils, the method that has been adopted of 

 curing them is believed to have brought 

 great danger to society. In this sphere re- 

 gard must be had (or our institutions are 

 imperiled) to the two fundamental princi- 

 ples of republicanism : that all concentra- 

 tion of power should be held to strict ac- 

 countability ; and that the exercise of all 

 responsible power should lie as closely as 

 possible to the people upon whom it is to 

 fall. The present standing of private cor- 

 porations before the law contradicts the first 

 rule ; for " these corporations are practical- 

 ly irresponsible to the people by whose fa- 

 vor they exist, and whom they pretend to 

 serve. Popular liberty could be menaced 

 by no greater danger." The growing impor- 

 tance of the Federal Government threatens 

 to disregard the second rule, that respon- 

 sible power should lie as closely as possible 

 to those upon whom it is exercised. Yet 

 " the financial disabilities under which the 

 States rest have placed them hors de combat ; 

 and, without some radical modification of 

 existing relations between the various cen- 

 ters of government, the pressure of coming 

 events will inevitably lead to an extension 

 of administrative functions under the direct 

 control of Congress." Moreover, as the coun- 

 try becomes more populous, and its various 

 relations more complex, the functions of 

 government must necessarily extend to con- 

 tinually new objects. The States are the 

 proper center for their exercise, but they 

 are considered as being in no position for 

 performing the duty, having been deprived 

 of the facilities for undertaking it by a se- 

 ries of mistakes. Hence, we have reason 

 to regard villi solicitude the next step in 

 the development of the industrial constitu- 

 tion of the United States. 



The author has evidently endeavored to 

 view judicially the various questions he has 

 raised, and has given a book full of thoughts 

 which it was well to have presented. 



Oil and Natural Gas in Illinois. By 

 Theodore B. Cojistock. Tp. 15. 



The author in this paper, which was read 

 before the Illinois Engineers' and Survey- 

 ors' Association, discusses the probability 



