Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1865-12-12

e such q form chat the interest only cam 2
n demanded until the Government shall I
m condition to pay the principal. il ca
De easily managed. IL Is undeniabl
% large nut the Resources OF tire country ar
% even now ample % carry and gradual
: TO reduce il and with the labor uuestio
al tne south settled on terms just to Ia
employer and labOreE and with entir
harmony between the different sections
twill be rapidly diminished, in burde
aud amount, by the growth of Ia
country, without an Increase Of taxation
PAYMENT or THE DEBT If FUNDED.
The following estimate of the tim,
} which would be required 10 pay IN,
national debt lif fanded at five per cent
and at five and One-half per cent by
the payment Of two hundred millions oil
dollars annually on the interest and prin.
cipal, and also OF the diminution of the
burden Of the debt by the increase oI
productions, may not be without interest
TO Congress and to tax payers.
The national debt, deductinr MONEYS
in the Treasury, was, on the 81 Il of Oc-
tobeE 1865, S2,740, ,s54, ,750. Without
attempting a nice calculation Of the
amount il may reach when an our liza
bilities shall be accurately ascertained, it
| seems safe TO estimate il, ON the 1st Of
July, 1856, at S3, 003, ,000,0J0. The exact
amount Of existing indebtedness yet un-
/ settled, and the further amount that may
accrue in the interval, are not now cana
| bic Of exact estimation, and the revenue
of the same period can only be apprOXi-
mately calculated, but il viii be safe to
assume that the debt win not exceed the
sum named.
The annual interest upon s., ,000, ,0J0.0
il funded at 81 per cent. per aunum,
would be Sl6j,0D0, 900, but If funded at ,
per cent. il would be $50, 900. .0O0
Now, if Two hundred millions per an
mum should be applied in half yearly
instruments of one hundred millions each,
i'm payment Of the accruing interest and
in reduction of the principal funded at
the higher rate of five and one-haif per
cent, the debt would be entirely paid in
thirty-twO ana One-eighth years. Al
five per cent, per annum it would be
eXungIished by the like application of
one hundred millions every six months,
i'm little over tweny-eight years.
At tho higher rate, the sum applied i'm
the first year Introduction Of theprincipai
Of the debt would be thirty-five millions
Of dollars; i'm the last or thirty-second
year, when the interest would be dfmin-
ished 10 little over nine millions ab0ut
one hundred and ninety-One million of
the uniform annual payment would 20 To
the reduction of the principal.
On the assumptionsl hat the debt may
be funded at five per cent, fifty million
would be applicable to the reduction of
the principal i'm the first year, and in the
tWenty-eighth or last year of the period
the interest falling to less than eight
million-One hundred and ninety-tw0
million Of the annual payment would 20
to the principal
The annual interest accruing unou
seventeen hundred and TWENTY-FIVE mil /
lion Of the debt on the thirty-iirst Of Oc- /
tOber last averages g g. per cent [
A part Of this sum is now due, another
portion viii be payable next year, and /
the balance viii be due or pabable, at 4
the option of tine Government, in eigh- I
teen hundred and siXty-seven and eigh- Z
teen hundredan siEty-eight. If these sew |
enteen hundred and twenty-five million /
shall be funded or converted into five per /
rents. by the year 1863, the average IN /
terest Of the whole debt will be 5.l9l per l
cent. In the year 1871, if the debt then .
should be funded at the same /
rate, the average interest would be re-
tuced to BIS, and in 1881 60 . per cent, I
the bonds for fifty millions 10 .
road, at per cent, which will have
thirty years to run from their respective L
lates. The interest of these bonds, added
% the supposed five per cents, would, i'm
1851, make the average rate of the entire
iebt five and three Gne-hmdredths Of
,ne per cent, until the whole should be
discharged.
In these calculations of the average
ate of interest upon the funded debt, the
United States notes and irac-
iOnal currency are not embraced. What
,ver amount of these S454, 100000 NAV
,ventually be funded at five per cent. per
innum, viii proportionally reduce the
.verage rates OF interest upon the whole
lebt
By the terms and conditions Of some
portion of the debt, the interest ON the
whole cannot be reduced to exactly five
)er cent, unless money may be borrowed
Il some stage of the process, at trife
,elQw I'VE per cent; a bonus of one
entn OF one per cent, paI1 nv tba bid-
lers for flyer cent. loans, would more
han cover the excess, the probability Of
which fully warrants the calculation sub
nitted as to the payment OF the totaldebt
It this rate.
1t must be observed, also, that the as
umed principal of the debt in July, 1866,
must undergo some diminutiOn before the
unding in 1861, 1865, and 1869, begins.
.fOnly one hundred million shall be paid
IF in these three years, the principal,
hus reduced TO OtWenty-nine hundred mill
ion, would be eXtinguished by the pro-
,ess already stated in twenty-nine years,
t fndet at 6s per cent, and, if at per
,ent., in something less than twenty
even years. And, it is well worthy Of
attention that one hundred million less
at the commencement of the
process Of payment, will save four hun
ired million i'm round numbers, i'm the
md, if the rate is 81 per cent, and three
hundred million if > per cent
The burden of a national debt is, of
course, relative TO the national resources,
lHd these resources are not strictly speak
ug, capital, but the current product of
he capital and industry of the country.
The annual product, however, is found
o bear "A certain ratio to capital, and this
alto may be conveniently and safely
Ised in computing the probable resources
which must in the future meet the
requirement for the payment T
IF interest and extinguishment of the
lebt.
OUR NATIONAL ASSETS.
1t has been estimated by one who has
made this subject a study, that the pro-
lucts Of agriculture manufactures,
mining, mechanic arts, commerce, fish
sries, and forests, in the year 1850 We're
It $50 per cent Ofthe value, Of the real
md personal property Of the United
States. a similar calculation makes the
PRODUCTS Of 1860, 26.S per cent. Of the
wealth of the country in that year, as
liked by the Census returns. In the cal
t.aI
# capital and industry are taken, for con-
yenience. at . per cent. of the cap
tai wealth of the country, and the
,aptal of each decimal year of the
hirty that our national debt
nav run before its eXtinguishment
" the application of two hundred
million per annum TO the payment Ofits
principal and interest, is here estimated
mon the basis of its amount and increase
Is given by the census of 1860. In the
year $50, the real and personal property
# the Union was valued slaves eXcluded)
it fourteen thousand one hundred and
million Of dollars. or this
AMOUNT the States lately in insUrrectiOn
leld three thousand four hundred and
,ixty-seven million, being an increase
upon the like property OF 1850 Of 1891 /
per cent The property Of the loyal
States was valued at ten thousand seven
hundred and sixteen million, an in
,rease Of 1865 per cent. over $780, to-
yether averaging a decennial increase
I29.7 per cent.
Now, taking the increase Of wealth in
the Ioyal States in the ten years from
1850 70 1870 at 125 per cent, we have, As
their capital of 1850, S24, III, 900; and ii
we nut the wealth Of the other States at
The same figure as in 1860, without al
lowing anything for increase, we have a
capital, for 1870, of S27, ,57S 900 900 This
sum gives us the product of
he year at 1854, 10000 upon
which payment on the debt of
500, 100000, is % per cent. If we
add but 25 per cent. to the wealth Of 1850 (
for the States lately in insurFection as
heir probable valuation in 1870, the
,haree of two hundred millions upon the
products of that year will be Isl per cent.
But, allowing all that can be claimed in
his respect, and taking the lowest esti-
mate for 1870 as the basis for calcJi-
atipg the wealth and products Of
he wear 1880, lbs per cent. increase in
this period gives q capital of siXty-two
thou sand and fifty millions, and pro-
luct of sl5,5l2,000000, upon which a
charge Of 500, 600 fails to l-29 per
cent. In 1880, the wealth, estimated at
an increase Of only 100 per cent. upon
that Of 1880, gives the years products at
81, ,O25, ,000,O ,O0O, upon which 500, 100000
amounts to only 0.644 per cent, or less