American watchman and Delaware advertiser. [volume] (Wilmington, Del.) 1822-1828, 1825-12-30

at four and nan per CENT, lot d ssoeh W I'M
amount at six per cent, the latter being so much
Of the stock of 1918 as was intended BY the Act to
be redeemed The Act also authorized loan 10
the same amount and at the same rate OF interest,
to accomplish the same object; both modes not 70
be pursued if either succeeded. The new stock OF
four and half per cent? whether proceeding from
the exchange or The loan, was, by the terms OF the
act to Be subject to redemption, IN 1879 and 1851,
in equal portions. The proper measures we're la
ken 10 execute this Act but have prevailed only to
a limited extent. The operation OF exchange
which was first resorted to took effect to the amount
of l ,5e5 1873 S8 and this sum, divided into eqoal
pats forms the Two sums that now stand IN the
general table OF the debt, as redeemable IN the
years 1929 and 1880, whilst they have also served
diminish, by so much, the six per cent stock oil
1918. Proposals for loan for the residue OF the
sum wanted were next issued but no offers we're
received. The causes of the failure, it may be pre-
sumed, were, the low rate of interest, and short
periods OF redemption, held out by the act, IN con-
junction with activity in the commercial and
manufacturing operations of the country, afording
higher inducements to the investment OF capital.
This mode of dealing with the debt, whereby,
TN ough The fundamentally OF new loans, stock at
higher interest is converted into stock at redu
red interest, and whereby, also, the exnguishment
OF the principal made fall in pay ments as near
iy equal as may be, throughout gwen NUMBER OIL
years, is evidently advantageous 10 the pubic
since it not only lessons the national expenditure,
en- account of interest, but guards against the pos
siols accumulation OF money in the Treasury, IN
years when il might remain inactive, towards the
progressive reduction Of the debt. AS il is mode
fully sanctioned by Congress- heretofore. It is re
specially recommended on this occasion, that an
Act be passed at an carly day OF the session, CIV
ing au hory 10 borrow 00O,000 of dollars. at an
interest not exceeding five per Cent? redeemabe, in
equa! portions, in 1929 and $780, in order that the
- 1 ~
entire remaining amount Of the six per cent. stock
of 1915, redremable IN that year Nine millions,
with the disposable means which the Treasury will
probably have al command in 1926, it is believed,
will form sum commensurate with this object.
Five per cent. is named, as the maximum OF inter
est and, considering the short period: OF redemp-
ilon it is probable that The loan could be obtain
ed al a lower rate. The contingencies OF the mo.
ney market might, indeed, produce more tvora-
Bile offers tut these are not TO be counted upon
with any approach 10 that certainty which should
form the basis OF such financial operation.
Should the act in question be passed. II is further
respectfully recommended that in HE even; OF the
loan being obtained under IT, authority be given to is
sue 10 the holders OF the stock under the hid OF
March last, exchanged stock equal to the amount
ot the subscription before stated viz. l,58539 49,
bearing TIE same rate OF interest as that which may
be issued under the act proposed. The two acts
will have had precisely the same obi ect. The sec
ond should II succeed! will only have ccnsummated
All operation which will date its inception from the
first 1t is therefore considered that it will belong
proper estimate of good faith TO place the stock
holders under both ac's upon footing oil equality.
Those who were willing TO accede to the terms oil
The Government at an eary day in this Transaction
should not be left IN worse situation than those
who may have held back in the hope OF better Of
Fers Let oil be treated alike. II is thus tina, the
Government will exalt itself before the nation. 1t
is thus that, substituting an expanded justice TO-
the mere letter OF bargain, it will be likely TO in.
vte still larger confidence in future. II is thus thai
Il will ultimately be the gamer ~ that connection
invariably subsising between the permanen, inter
est Of every Government, and its standing of unm
peachable and spontaneous equity in the eyes oil the
public creditor.
Should an act for the loan OF nine millions be
passed, considerable surplus OF debt at per cent.
vii still remain to be provided for for the service o!
1927 More than thirteen millions Of the stock
OF 1914 becoming redeemable in 1897, the whole
cannot be redeemed in that year but with the aid Of
a loan. A loan oil six millions would be sufficient,
n all probability, for this purpose and is according
y recommended The in.eres; not 10 exceed FIVE
per cent. and the amount to be also subject to
demption in 1929 and $780, in equal portions The
effect of the two loans recommended, which il would
be most desirable to authorize in distinct acts, would
it is believed. be, TO enable the Government to re-
deem the whole of the six per cent. stock of 1918
and 1914, in the course of 1926 end 1927. 1t would
also throw upon each Of the years 800 and $780,
amount Of debt equal about eight millions and
halt instead Of less than one Million according to
the distribution as at present existing. The only
remaining stock of six per cent. would then be that
Of 1915, 10 amount under nine millions and half,
redeemable in 1928. Should no Unforeseen expen-
diures arise, and proper economy be kept up in
The public administration, it may reasonably be
hoped, as before intimaed, that the surplus revenue
at the disposal Of the Treasury in 1923, will be
equal to the reimbursement OF that After
1880, the whole amount Of debit on the results here