The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-05

observation-disclosures from the Debts OF
Other Nations.
Precisely what was predicted short time
ago in this journal has already come to pass.
The power and elasticity of our financial sys
TEN, and the prospect for the future, full of
solid hope and confidence, are already in course
of being demonstrated. Our national securities,
which short time back were depressed and
.aanguid, have now risen, owing to the victori-
Gus career of our armies and navies, to high
premium, and, there can be no doubt, are des-
tined to rise still higher. These securities CON
stitute our national debt, and the confidence
with which investments are made in these
values, is signal proof of the high estimation
In which the United States government is held
by the great commercial world, and of the
strong confidence which prevails, both in our
government and people, among those who
best know This confidence rests upon sure
foundation, and, whatever may be the final issue
of this war, will remain mistaken. But let US
inquire on what are this confidence and this
security founded? The answer il plain and
Himple: they repose not only upon our ante
'eedents in respect to former war debts, but
also upon the wisdom and prudence of our
present government and Congress in devising
such system Of taxation as will both satisfy
the country and secure funds for the regular
payment of interest on our debt.
| In former trials and difficulties, when Il was
found necessary, as in the present war, to incur
national debt, the government has been able,
with comparatively moderate tariff, and with
out resorting to any extended scheme of ma
Nhonal direct taxation, not only to pay regu-
larry the interest accruing on the debt, but in
q few years to extinguish and pay off the prin-
cipal, and then, after few more years, to have
surplus revenue which it became matter
of some difficulty to get rid of. This great
event, the only one of the kind ever known in
the financial records of modern nations, occur
red in the last four years of the Presidency of
General Jackson; and it may confidently be
predicted that the same will occur again
though of course not at so early q stage-with
the present debt which this detestable rebellion
has obliged the nation to contract.
It is true the proportions of this, our war
debt, are gigantic compared with former debts;
but the wealth and resources of the country
have also increased in what may be called q
gigantic ratio, and it will be, there can be no
doubt as easy for u.s. with an increased tariff,
an increased importation, and a moderate
amount of taxation upon few general articles
of universal consumption, not only to meet the
interest of the debt, but after some years to
redeem and pay Off the principal as was done
in the time of General Jackson above referred
to. For, if our debt is much larger now, so
are our resources, and, if q small amount of
indirect taxation then was sufficient to extin-
guish the old debt, the same indirect taxation
now, of nearly double the amount, with the
necessary direct taxation added to meet the
greater exigencies of the condition, will soon
accomplish the same result again, notwithstand
ing the magnitude of the debt incurred.
Under this view Of the case we have every
reason to be in good heart at the prospect
before US, and strong grounds for assurance
that the value of our public securities will go
on increasing till they reach premium as
high as ever they did in the records of the
last debt. Let Us examine the proportions Of the
present debt, bearing in mind that. gigantic as
they are, yet, viewed from the point and posi-
tion we have just taken, we need not be afraid
mate recently made by the Secretary of the
Treasury, the national debt to be created by the
present war will amount to six hundred mil
lions of dollars by July, 1862. We may take
shis as the expenditure Of the first year of the
war; and similar war expenditure will doubt
less be required for at least two more years.
For we may safely calculate that even should
the war be terminated before July next as to
actual hostilities, yet the expenditure will have
to be continued at least two years longer; for
our expenses and troubles will not cease when
the last shot is fired and the last battle has been
fought ard won. After the rebellion has been
subdued it will still be necessary to keep up
our armies and fleets on a war footing for two
more years at least, until the supremacy of the
federal laws shall have been established in all
che South, and the implacable and plotting
enemies Of the Union shall have been every
where put down and extinguished The ex-
penditures Of these three years, according to
Che estimate of the Secretary of the Treasury,
will bring upon us debt of eighteen hundred
millions Of dollars. The interest upon this
debt, according to the rate and conditions Of
the several securities, will average about six
per cent, which will amount to the sum of one
hundred and eight millions of dollars, which
will be required to meet the interest Of our
debt alone This sum Of hundred and eight
millions lacks only few millions to be equal
90 the whole amount of interest raised in Eng
land by taxation to pay the interest Of her great
national debt; for the interest on the English
national debt was, on March 81 1860, one hun
dred and twenty-one millions Of dollars.
Thus it will be seen that our debt, contracted in
only three years time, will cost us very nearly
as much as the whole English debt now costs
the English people, for debt contracted in o