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 by all but barbarous communities, and as a corollary, that there is no particular reason to be alarmed at the great increase of national indebtedness throughout the world.

There are, perhaps, some considerations on the other side. An increase of indebtedness is of its nature permanent; an increase of prosperity is not only not certain to last, but is practically certain to be reduced now and again by bad years. It means that money has been laid by and invested in remunerative enterprises, such as factories, ships, railways, houses, or the reclamation of land. Obviously, if population increases slowly, or is stationary, the development of wealth at constantly increasing rates cannot continue. A point may be reached when further production becomes increasingly difficult, and when families spend their surplus incomes more and more in articles of ostentation and comfort, because investments are less and less remunerative. Six or eight years of great depression, attended with the closing of factories, the throwing of land out of tillage, and the working of half the railways at a loss, would tell very seriously upon the capacity of even a prosperous country to meet its engagements. As for the supposed guarantees of a debt, they are all more or less visionary. In a time of great depression the State must resume its customs' duties or its mines, if it has pledged them, and its lands and its railways may be unsaleable at any depreciation. The only real guarantee of a debt is national character. The financial world requires to feel assured that under any possible form of government the importance of maintaining the national credit will be regarded as paramount to every other consideration. It is among the solid advances of practical morality that this is so much better understood than