Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1826-01-04


Total rede.mabIe at the periods spe 81 Aso soe q
cited o f
Total redeelable at 'he p''''' " ao,aee,231 As
the Government
Total amount of funded dept OH VIC soo dos ss7 70
Arst dss of October, 1875
TheI amoun, of Treasury Notes OUTSTANDING
IN the first of October, 1925, Is esigha'eu a.
$1,000 Stock. unre-
deen,,d on that day, including a"aiu' NV
piled or, at $3.50 II. ,:h;,, ~.
Tn foregoing recapitulation exhioi Us inc
nrecis amour, Of the public debt nov uue, as
we'll Is the different periods at wh,en, =! .n
terms of the several loans unGer "hi -, ~ 90
contracted, the United States are al iipe''! -
pay itof. lowed I'm
der til, head Of expenditures for 1928 as nav
ino BEEN paid off in that year. 7,127,ooi ~
we're on account of principal OF debt, ana inc
remainder on account Of interest during ing
three first quarters of the year. Nearly 'hT
whole of the principal, thus paid, was ouf
standing at an interest of per cent. Looking
70 tbeaboye recapitulalion, it appears that, IN
the wears 1926 and 1927, larger amo9R!lo'
doh, becomes redeemable than it will TALL WIN
in the ordinary surplus means OIL lhe oo'fi"
ment 20 pay in the course OF those years. we
a sum exceeding sixteen millions IN the lorfner,
and thirteen millions in the latter year. ho'h
these portions of debt are, also, at an Interest
of six Der cent. In 1928, the amount redeem
able is at point which II may be hoPea' 'he
stated means of the Treasury, for that year,
will reach the ability to pay OIL increasing as
,he process of reduction advances, both ny
the increasing means Of the nation ami the an
nual liberation OF interest on the amount Oh
deb, reduced. But, in the yearlS29, only
very small amount becomes redeemaoie, WIS
less than one million, and, IN the year 1850,
sum no larger.
AT the period Of the last annual report from
the Treasury, no portion Of the debl became
redeemabe in either of those years; and, with
view to a more equal diffusion OF payments,
as we'll as to effect saving IN interest, II was
recommended that the excess OF debt which
could not. by the ordinary resources OF the
Treasury, be discharged in 1926 and lS27-the
debt redeemabe in the former year, then stand
ing. al $4,000 ,Ooo,-should be thrown, in equal
portions, upon the years 1929 and 1880. 10
carry this recommendation into effect, so lar as
applied to the year 1926, loan OF twelve mil
lions was recommended at per cent, one hall
to be redeemable in 1929, the other half in 1880;
the entire twelve millions being intended TO
constitute fund with which, in conjunction
with the annual surplus means 9th Treasury,
to nav off the nineteen millions redeemable in
1896 The principal of the recommendation
was adopted by Congress, but not its precise
terms. An act Was passed on the Sd OF March,
oh ut
amour, of Twelve millions Of dollars, at four
and half per cent, for stock OF like amount
a, six per cent, the latter being so much OF the
stock of 1918 as was intended by the act TO DE
redeemed. The Act also authorised loan
to the same amount, and at the same rate OF
interest; to accomplish the same object both
modes not to be pursued; if either succeeded
The new stock Of four and half per cent,
whether proceeding from the exchange Of the
loan, was, by the terms OF the act, to be subject
TO redemption in 1929 and 1880, In equal Por-
lions. The proper measures were taken 10 ex-
ecute this Act, but have prevailed only to
limited extent The operation OF exchange,
which was first resorted 10, took effect to the
amount Of l,5S5,l3S IS: and this sum, divided
into equal parts, forms the two sums that now
stand in the general table Of debt, as redeema-
bic in the years 1929 and 1880, whilst They
have also served TO diminish, by so much; the
six per cent. stock of 1918. Proposals for
loan for the residue of the sum wanted were
next issued; bit no offers were received. The
causes of the failure, it may be presumed, were,
the low rate Of interest, and short periods OF
redemption, held out by the act, in conjunction
with an activity in the commercial and manu-
featuring operations Of the country, afiordng
higher inducements to the investment of CAPT
tai. This mode of dealing with the debt,
whereby, through the fundamentally OF new
loans, stock at higher interest is converted
into stock at reduced interest, and whereby,
also, the extinguishment Of the principal is
made to fall in payments as nearly equal as
may be, throughout given number OF
years,.is evidently advantageous TO the public;
since it not only lessons the national expenditure
on account of the interest, but guards against
the possible accumulation of money in the
Treasury, in years when it might remain in
active, towards the progressive reduction OF
the debt AS it is mode fully sanctioned by
Congress, heretofore, it is respectfully recsm-
mended, on this occasion, that an Act be pass
cd an early day in the session, giving autho-
rity 10 borrow rine million of dollars, al an in
terest not exceeding five per cent. redeemable
in equal portions, In s29 and $50, in order that
the Treasuary may be enabled to pay off, in
1926, the entiie remaining amount of the six
per cent. stock IF 1915, redeemable in that year.
Nine millions with the disposable means which
the Treasury vii probably have at command in
e hni,,. "a T,>,,,,