The Portland daily press., 1865-05-25
Thursday Morning, May rs, 1866.
IFrom The PApadelpAia prs.s.l
low the National Debt can be Paid

B.
,e Mr.. JAY COOKE who certainly ought to
know something about national debt and re-
sources, has published for gratuitous distribu-
tion a pamphlet, written by DIR. ELDER, en-
titled SHOW the National Debt can be Paid"
That it can be, and viii be, paid nobody
b dOnbts, for the simple reason that majority
OF the taxpayers and voters OF the nation are
a the creditors, and will for that reason, If for
no other, take care OF the nations credit, and
apply its abundant resources In the best and
wisest way TO the ultimate discharge Of all its
liabilities. This pamphlet resolves the prob
lem expressed in its title thus: rs 10. ssf
dq The aggregate debt ON. 3lst March, 1865,
officially stated, was, in round numbers, 1887
millions; the interest on this sum for the
3 year then beginning, 103 millions. Assuming
that the war will be so far over by the 1st of
July next, that its expenditure proper will
then cease, the increase of the debt ii estima-
ted at the highest average rate which it has
hitherto attained 1904 ,808 per diem, would
bring the total up to 2 557 IL millions. The
unknown debt, outstanding in the year 1868
which came in for settlement in 1854, did not
exceed 100 millions: but allowing for all
possible floating debt, as 1t is usually called,
its total amount cannot possibly exceed the
complementary 442 IL millions which will
carrythe up total to the sum of 1900 millions.
The income from internal taxes at present Is
at rate which promises s260 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 ,851 millions, and
was at thea veragerate Of 1-2 per cent. per
annum. 1t is estimated that the total interest
of the year may reachl l26 millions, this leaves,
199 millions for ordinary expenses. In the
year 1856, If the government notes shall be so
long keptin circulation,the interest will be las
millions. After that, If the whole debt shall
be funded and made to pay the ayegage inter-
est the SUM will be 1876 millions, leaving Tor
ordinary expenditure, out of the revenue, If
held down to the present amount l60 millions.
(The average total expenditure of the six
years preceding the rebellion, exclusive OF
interest and payment of public debts, was SO
millions.) Thus the question OF interest and
ordinary expenditure of the Federal Govern
ment is disposed Of for the six next years,
charged upon the revenues derived from the
loyal States only. 81
On the assumption that reduction of the
debt may be commenced in 1870, the writer
submits statement of the wealth and annual
product ofthe restored Union, calculated upon
the basis of the census returns of 1850 and 800
for every year from 1870 to 1880, showing the
burden OF interest and instalments Of the pub
lie debt during the process Of its extinction,
with the tate per cent. of the charge OF the
interest, instalments of debt, and ordinary ex-
penditures Of Government, upon the annual
product OF the capital and industry OF the ma
ton. In this scheme the ordinary peace ex-
penses are put at 200 millions for the first
ten years and at 250 millions for the next and
last ten years of the process. FL
This is certainly an ample allowance on
this account. The rate ofincrease ofthe capital
wealth of the Uniol- in the decade 1850 go was
1875 per cent The estimate for the twenty
years after lS60is put down to 100 per cent.
in ten years; and the annual product lowered
from 26.8 per cent. of the capital wealth to 25
per cent. This reduction is very large. 1t is
not presented as an estimate by the author,
but offered as a statement entirely free from
b 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 ex-
penditure 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. ~ 4sHf
So the frightful figures of our indebtedness
are matched, at least, by the astounding facts
of our condition and resources. s8
For the purpose of helping to the apprehen-
sion of these enormous sums and their pressure
upon the nation as it is to be, the author gives
us the burden of the British debt npon their
resources. by which it appears that the taxes
actually levied in the United Kingdom have
averaged II per cent on the yearly yield OF
her capital and labor for the last forty years,
and in that time the principal Of the debt has
been reduced but two hundred and fifty mill
lions ofdollars. ndg
So it appears that our debt, all told, will be
but three-quarters the size OF England's and
the burden Of its payment not half SO great
for twenty years as hers has been for twice
that length of time.
The present and prospective resources oil
the restored Union are compactly but clearly
treated, and the reader is specially guarded
against taking the scheme submitted as the
estimated measure, either of the ordinary
peace expenses, or OF the actual taxation re
quired for the purposes indicated. They are
both put at the highest figure that any one
skilled in such matters can imagine, the inten-
tion being to show how easily the burden can
be borne and finally disposed OF.
There are many other such topics as are in
volved in the discussion, briefly but satisiac
torily treated, and we can recommend the
treatise as a study in practical finance, and &
model of compactness brevity in and state
ment.