March 38,1889
Record and Guide.
387
It is interesting in this connection to notice the steps which Switz¬
erland, probably the most democratic country in the world, is
taking in the direction of temperance reform. A bill concerning
the monopolization of the liquor ti-afiic hy the government in
Switzerland was passed by the Federal Assembly, December 23,
1886, and ratified by the Swiss people May 15, 1887. Under this
law tbe absolute control of tbe manufacture, importation and recti¬
fication of distilled liquors is vested in the Confederation, with
indemnity to distillers. The importation of superior liquors, how¬
ever, is permitted to private persons under conditions fixed by tbe
Federal council and for a certain monopoly fee. It is provided
that about one-fourth of the necessary supply of liquor shall be
obtained from domestic producers. After the liquors to be used for
drinking purposes have been rectified and inspected, they are then
sold at auction by the Confederation for cash in quantities of not
less than 160 liters and at a price fixed from time to time by the
Federal council. The sale of spirituous liquors of ali kinds in quan¬
tities not less than 40 liters is regarded as a wholesale business, and
is free to all; the sale in quantities under 40 liters is regarded as a
retail business, and is subject to a continual tax levied in proportion
to the amount of liquor sold and fixed by the authorities of the
cantons until it is placed under Federal regulation, Tbe net
revenues thus derived accrue to the cantons in which the liquors
are sold. At the end of each year the net income of the monopoly
administration is divided among the several cantons, according to
the population. Ten per cent, of the revenues which each canton
thus receives must be applied to the suppression of intemperance.
Heavy penalties are imposed for violation of this law in any
particular.
The proposition to give the Swiss Confederation the monopoly of
selling spirituous liquors, although introduced as a temperance meas¬
ure, was strongly opposed by the Church on the grounds that the
government should not make itself a party to a traffic so injui-ious
to the people. The proposition was also opposed by the large distil¬
lers throughout the country ; but it was carried in the face of all
opposition by almost a two-thii-ds vote of the people, and recent
reports are very favorable to the working of the system. The fail¬
ures in the working of this liquor law up to tbis time have been in
its detailed application, and not in any of its fundamental principles.
The retail price of liquor has been raised since the passing of the
law, and this bas induced smuggling of cheaper liquors into Switz¬
erland to some extent; but it is thought that tbis can be checked
by more vigorous Custom regulations. The revenues derived from
the monopolizations of the liquor traffic have also not been as large
as were anticipated. It is too early yet to observe the hygienic
effects which it was urged would be produced by a proper rectifica¬
tion and inspection of all distilled liquors by the Confederation^
still there is no doubt tbat the cases from alcoliolism will be greatly
reduced. In Stockholm, Sweden, the number of cases from alco¬
holism was reduced from 600 to 100 annually, by the substitution
of pm-e or rectified spirits for impure unmixed liquors. It is esti¬
mated that 12,000,000 francs worth of artificial wine was consumed
yearly in Switzerland before tbe new Liquor law went into opera¬
tion. The prevalence of intemperance resulting, it is believed, from
the free use of this adulterated alcoholic beverage was enormous,
and it is expected, not without grounds, that the law now in force
will prove effectual in diminishing intemperance.
Even the most critical of Mugwumps are forced to admit that
the nominations made by President Harrison, especially for diplo¬
matic service, have been with one exception excellent. ' For this
Secretary Blaine should get credit as well as the President, for he
must have had a good deal to say respecting these appointments.
The President is taking bis time and trying not to make mistakes.
His predecessor was not so lucky. Several of his flrst appointments
were, to say the least, unfortunate; but this was due doubtless to
his lack of acquaintance with the public men of the country. But
President Harrison and Secretary Blaine have the advantage of
wide acquaintance and a knowledge of the available political and
diplomatic talent of the country. Hon. Whitelaw Reid would
doubtless have preferred the English mission, as his college-acquired
French must be by this time rather rusty; but, after all, a residence
in Paris for the next foiu- years is much more likely to
interest a journalist and historian—for Mr. Reid can claim hoth
titles—than would the enforced spending of his time in foggy
London! France will see some dramatic and picturesque scenes in
the coming years. This summer and fall it will be the cynosure of
Europe because of the Exbibition commemorating the French
Revolution. Then doubtless the present Republic will be over-
tlii-own and some other form of government established. A
Minister m France, like Mr, Reid, could enrich the historical
archives of this country by his observation of what will pass before
bis eyes.
under what auspices they exist, the amount of money appropriated
for each during the past year, and by what authority such payments
are made. The report answers the questions in full, and shows these
totals: Roman Catholic, $988,877,98; Protestant, $516,004,80;
Hebrew, $166,955,09.
Comptroller Myers has sent a report to the Legislature in reaponse
to a resolution of inquiry asking for the names of institutions in New
York city in receipt of public money, tbeii: nharacter and objects.
Our Prophetic Department.
Banker—In view of the war, which cannot be long delayed in
Europe, something might be said about national debts. The United
States is, after all, the only nation which is actually paying up its
national debt. Great Britain has made some pretense of doing so,
but it has been slow work ; and the extraordinai-y expenses she is
soon to incur to add to her naval strength will again bring about
an increased debt.
Sir' Oracle—You bave started an interesting topic, and oue
about which there is much misconception, Tlie debt of Great
Britain is not only absolutely but relatively less than some years
ago. For several decades the nation has been adding greatly to its
wealth, aud at the same time paying off a small portion of the
principal,of its debt.
Banker—But the point I wanted to get at is : Will the civilized
nations of Europe eventually pay their debts off, or will they get
into the condition of over-built railway systems and be forced to
scale their obligations? Is not tbe tendency towards accumulating
more debt ?
Sm 0.—It is a fact not generally realized that the free, demo¬
cratic nations are more mindful of their pecuniary obligations tbau
are monarchies and empires, and hence that the credit of the one is
much better than that of the other. The United States has been
liberal to the verge of waste in dealing with its creditors. It has
paid them before their money was due—at times even allowing a
high premium for the privilege of cancelling their obligations
England, which is virtually a democracy, is converting its debt
from 3 per cent, to 2% per cent. The national debt of Holland
bears a low rate of interest and commands a premium. Spain
repudiated its debt when under an irresponsible government. The
national debts of Austria and Russia bear a high rate of interest,
and are looked on with suspicion by the great money-lenders of
Europe. The bankers of the Old World ought to favor democracy.
Banker—But the French debt ia in i}^ and 5s. Why has not
the interest been reduced ?
Sir 0.—Because it is due to the French investor of the middle
and lower classes. It has been several times mooted to issue a loan
of 3 per cent, to take up the Rentes bearing 4% and 5 per cent.
But the change would have affected so mauy voters that any
government that attempted to carry it through would have been
ruined.
Banker—We did not pay much attention to tbat class in this
country. Wben we first began paying our debt, 5, 6 and even 7
per cent, obligations were available for trust estates; but the widows
and orphans were all impoverished by a national policy of reducing
tbe interest on the national debt. We have beeu monstrously
generous to soldiers and their widows and orphans, but unspeak¬
ably cruel to the widows and orphans dependent upon trust estates
for a living. What have you to aay about the German national
debt?
Sir O.—Practically that great country bas no debt, for if it sold
all its assets it would have a surplus in its treasury. The telegraphs,
railroads, public buiidings and land owned by Prussia, the other
States and the Empire far exceeds in value the debts chargeable
against their respective treasuries.
Banker—France has a prodigious debt, but if its finances do
not break down in the meantime it will come into a vast deal of
property in the way of railroads in the middle of the next century.
I fear, however, that the country will become bankrupt before that
time, especially if it indulges in its passion for war with Germany,
France is .in tbe most critical position of any of bhe European
powers. Taxation is sapping its strengtli, while its population is
stationary and its wealth increases very slowly. If the French
people would accept 3 per cent, and the nation should agree not to
go to war for ten years France might pull through; but it seems to
me bankruptcy is in store for that nation irrespective of its form of
government. The Republic has done badly enough but a king, an
emperor or a dictator would be forced to go to war to give prestige
to his rule.
Sir 0.—It is worthy of note, in passing, that there is a provision
in the charters of all the English raih-oads under which the govern¬
ment can purchase them at tbe end of a definite period. We have
made the frightful mistake in this country of granting perpetual
charters, and in thus creating a Frankenstine which may in the end
sti-angle us. However, we have the right, legally, to supei-vise their
passenger aud freight charges.
Banker—To sum up the situation, wliat is the prospect for
European national debts ?
Sm O.—in time they must be scaled. 1 doubt if any nation in
BuropCi but Germany, will ever meet all its obligations. Should
England lose its Indian Empire, or its Houth Pacific colonies, or go