Staunton spectator. [volume] (Staunton, Va.) 182?-183?, 1832-02-03
The operation Of the sinking fund ecs

tnS So'tasSmehis vi Tic treasury, the
ten millions were not regularly applied 10
the payment of the debt; and, upon the
termination of that Administration, the
Treasury stood largely in arrear to the
sinking fund. During the subsequent
Administration Of four years net only
was the ten millions faithfully applied
during each year, but those arrears were
brought up and all previous deficiencies
made good. So that, when the present
Administration began, plain uni ncum-
bered and well defined path lay directly
before it. Under the measures which
have been devised, in the short term of
fifteen years, the Government has paid
nearly one hundred millions of principal
and about an equal sum of interest, leav-
ing the small remnant behind of twenty
four millions.
OF that remnant, thirteen millions con-
sist of 3 per cent. stock, created by the
act Of 1879, which the Government does
not stand bound to redeem at any pre-
scribed time, but which it may discharge
whenever it suits its own convenience
and when it is discharged it must be done
by the payment of dollar for dollar.
cannot think, and, | should suppose,
Congress can hardly believe, with the
Secretary of the Treasury, that it would
be wise to pay off stock of thirteen
millions, emitting its holders to but three
per cent. with capital of thirteen mil
lions worth an interest ofsix per cent. In
other words, 20 take from the pockets
Of the people two dollars to pay one,
In the hands of the stockholders.
The moral value eft the payment of
National Beht, consists in the demonstra-
ton which it affords of the ability of
country to meet, and its integrity in full
filling all its engagements. That the
resources Of this country, increasing as it
constantly is in population and wealth,
are abundantly sufficient to meet any
debt which it may ever prudently con-
tract, cannot be doubted. And its pune
tuality and probity from the period Of
the assumption, in 1890, of the debt Of
the Revolution down to the present time,
rests upon a solid and incontestable
foundation. The danger, perhaps is,
not that it will not fairly meet its engage
ments, but that from an inordinate avidi-
ty, arising from temporary causes, it may
bring discredit upon itself by improvi-
dent arrangements, which no prudent
man. In. the management of his private
affairs. would ever think of adopt
ing.
Ofthe residue of that'twenty- -four mil
lions of debt, after deducting the thirteen
millions three per cent, less than two
millions are due, and of right payable
within the present year. If to that sum
be added the moiety which becomes due
on the 3lst Of December next, of the
$4,454,727 created by the act of 26th
May, 1S24,we have but sum Of about
four millions which the public creditor
can lawfully demand, or which the
Government is bound to pay in the course
of this year. If more is paid, it can on
ly be done by anticipating the periods Of
its payment, and going into the public
market to purchase the stock. Can it
be doubted that if you do SO, the vigilant
holder of the stock, taking advantage Of
your anxiety, will demand a greater
price than its value? Already we per-
eeive that the three per cents have risen
to the extraordinary height of96 per cent.
The difference between a payment ofthc
inconsiderable portion remaining OF the
public debt, In one, two, or three years,
is certainly not so important as to justify
resort to highly disadvantageous terms
Whoever may be entitled to the credit
OF the payment of the Public debt, i con-
graduate you, sir, and the country,
most cordially, that it is so near at and
1t is SO near being totally extinguished,
that we may now safely inquire whether
without prejudice to any established pol
Icy, we may not relieve the consumption
efthe country, by the repeal Of reduction
OF duties, aud curtaii considerably the
Public revenue. In making'th inquiry
the first question which presents itself
is whether it is expedient to preservethe
existing duties in order to accumulate a
Surplus in the Treasury for the purpose
of subsequent distribution am ong the
several States? Think not 1.-THE collsc-
ton, for the purpose Of such q surplus, is
to be made from the pockets of one por-
ton of the people, to be ultimately return
ed to the same pockets, the process would
be attended with the certain loss arising
from the charges of collection, and with
the loss also of interest whilst the money
IS performing the unnecessary circuit;
and IL would therefore be unwise. If it
is to be collected from one portion of the
people and given to another, it would be
unjust. II tits to be given to the States,