The West Virginia journal. [volume] (Charleston, W. Va.) 1864-1877, 1865-05-31
How the National Debt Can Be Paid.

DR.. Elder, of Philadelphia, has written
a pamphlet on this problem, from which
it appears that the aggregate debt on the
3lst Of May, 1865, officially stated, was,
in round numbers, 1861 millions; the
interest on this sum for the year then
beginning, l03 millions. Assuming
that the war will be so fur over by the
1st of June next that its expenditure
proper will then cease, the increase OF
the debt, if estimated at the highest ay.
erase rate which it has hitherto attained
(2,094,s0s per diem), would bring the
total up to 2,557t millions. The un.
known debt, outstanding in the year
1868, which came in for settlement in
1864, did not exceed 100 millions; but
allowing for all possible floating debt, as
it is usually called, its total amount can
not possibly exceed the complementary
4424 millions which will carry the total
up to the sum Of 5000 millions. The
income from Internal taxes at present is
at rate which promises 260 millions in
the current year; add customs, public
lands, and miscellaneous revenue, the
sum Of receipts for the year is safely put
at 325 millions.
The interest bearing portion of the
public debt on the 3lSt Of March last
was 1851 millions, and was at the aver.
age rate Of 81 per cent. per annum. 1t
is estimated that the total interest Of the
year may reach 12G millions; this leaves
1919 millions for ordinary expenses. In
the year 1866, if the Government notes
shall be so long kept in circulation, the
interest will be one hundred and forty.
eight millions. After that, if the whole
debt shall be funded and made to pay
the average interest, the sum will be one
hundred and sixty-ive millions, leaving
for ordinary expenditure, out Of the
revenue, if held down to the present
amount, one hundred and sixty millions.
(The average total expenditure Of the
six years preceding the rebellion, exclu'
sivc Of interest and payments Of public
debt, was sixty.thrce millions.) Thus,
the question Of interest and ordinary
expenditure Of the Federal Government
is disposed Of for the six next years,
charged upon the revenues derived from
the loyal States only.
On the assumption that reduction OF
the debt may be commenced in 1870.
the writer submits a statement Of the
wealth and annual product of the restored
Union, calculated upon the basis. Of the
census returns of 1850 and 1860, for
every year from 1870 to 1889, showing
the burden Of the interest and install.
ments of the public debt during the
process Of it'd extinction, with the rate
per cent. Of the charge Of the interest,
iustalments Of debt, and ordinary cxpen-
diturcs Of Government, upon the annual
product Of the capital and industry OF
the nation. In this scheme the ordinary
peace expenses are put at 200 millions
for the first ten years, and at 25O millions
for the next and last ten years Of the
process.
This is certainly an ample allowance
on this account. The rate Of increase
Of the capital wealth Of the Union in the
decade lS5O-6O was l26 per cent. The
estimate for the twenty years after 1869
is put down to 100 per cent, in ten years ;
and the annual product lowered from
26.S per cent. Of the capital wealth to
25 per cent. This reduction is very
large. Itis not presented as an estimate
By the author, but offered as statemeu,
entirely free from all cavil or doubt Of
safety. Yet one per cent of the total
product of the nation, SO treated, will in
twenty years discharge 5000 millions of
debt and further, the whole expcndi-
ture required by this scheme begins in
1870 at an aggregate Of fraction below
+ per cent. Of the annual product and
declines in the last year of the period to
less than two per cent.
So the large figures Of our indebted
ness are matched, at least, BY the
astounding facts Of our condition and
resources.