The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1865-12-12

will be:
For tbs civil servics.-.-.-.... 342lo5s9o
For pens and Indians II 6o9Gto q
For tn wsx DepAs fnens.-.. 3905Sle
For tAsf Navy Dvpsrt0ent... 43ss3ss7 M
For the interest on The public
dsbf..-..... 1n,ss2,oes
Leaving surplus Of estimated
receipts over estimated ex-
pendtures of--......--........ {ll1 6s2sls
The debt of the United States has increased
dSrfng the fseal year ending June 80, lsA5, f94l
o7yA51o4, sua during the 6rst qaArter Of the pres
ent fiscal year sl3s, ia, 0o7 %. The Secretary
has, however, the satisfaction Of being able to
state that during the months of September and
October the public debt has diminished to the
aIncuut Of about thirteen millis~s u dollars
II the expenditures for the rensaiug three quar-
tiers Of the present fiscal year shall equal the esti
mates, there will be 3 deficiency, to be provided
f,r by loans. of $ll2 1884, 947 20 to which must be
added $50, ,9ol for the five per cent Treasury
notes. tpart Of the public debit which become
due the present month, and are now being paid cut
Of moneys IN the Treasury. and all other payments
which msy be made ON the public debt.
The heavy expenditures of the last fiscal year
and Of the months Of July and August Of the
present fiscal year, the result Of tho gigantic
scale on which the war was prosecuted during a
portion Of this period. and the payment of the off
GERS and men mustered out Of the service. The
Of the year are for the payment Of troops which
TO remain IL the service, and Of those which
are to be discharged, and for closing up existing
balances.
TIE statement OF the probable receipts and ex
penditures for the next fiscal year, is, in the hi Oh
est degree satisfaetory- According to estimates
which are believed 70 be reliable the receipts OF
that year will be sufficient to pay ali current ex-
penses Of the Gov eminent the interest on the
public debt, and leave the handsome balance Of
<lli ,os2 sls.l TO be applied toward the payment
Of the debt itself
b. the statement Of the public debt on the 3Ist
Of October. il appears that, besides the compound
interest, the nited States, and the fractional notes
tie pas.~aus debt amounted to.....s l,379, 92e %
The debt due in 1888 and 1850, to- Isl. $40 $40 80
The debt due in 1867 and IS6s, to-. s4s, 59I so
During the month Of October, about $50 Oct. 9t0
of the compound interest notes funded In s. 81
six per cent. bonds, under the provisions Of the
&c, Of March 3, 1863.
The Secretary would be gratihed il the Treasury
could be put st once IN condition to obyiate the
necessity of issuing any certificate OF indebt-
edness, or raising money by any kind Of temporary
loans but be ui4y. for shon period. be obliged
TO avail himself Of any means authorized by
law for meeting current expenses and other proper
demands upon the Treasury
or rnE DEBT FAILING DrE.
when the whole debt shall be putin such form
THAI the interest only can be demanded, until the
Government shall b. in condition 10 pay the
prfneipait can be easily managed. II IS undsnia-
bly large. but the Of the country even
nov ample 10 carry and gradually reduee il and
with the labor question at the South settled on
terms Just to the employer and laborer, and with
eniire harmony between the different sections, by
the growth OF the country, without an increase oi
taxation.
The following estimate Of the time which would
he required u pay the national debt if funded al
Eve per cent aud at fve and halt per cent by
the payment Of two hundred millions Of dollars
annually on the interest and principal, and also Of
the diminution Of the burden Of the deb; by the
increase of productions, may not he without in
terest to Congress and to tax payers.
The national debt, dedueting moneys in this
Treasury. was en the 3ist Of October. 1868, 81
74e,s5i75o without attempting a nice calcutta
ton of the amount it may reach when all our liza
biIities shall be accurately aseertained. il seem.
sAfe 10 estimate it, the LIST Of July 1856 st threi
thousand millions Of dollars. The exact amount
OF existing Indebtedness yet unsettled, and The
further amount that accrue IN the interval, arr
not nov capable of exact estimation, and the reve
nue. Of the same period can he only approximately
calculated but il viii be safe TO assume that th'
debt will not exceed the sum named.
The annual in;cres; upon three thousand mil
lions, if funded At 81 per cent. per snnum, Womb
be one hundred and fifty millions.
Now, il two hundred millions per annum should
be applied. in half yearly installments Of one hun
dred millions each, in payment of the accruing IN
,ersst and in reduction of the principal funded a
the higher rate Of ~ per cent, the debt would b
entirely paid in thirty-two ard one-eighth years
At per cent. per annum, II would be extinguishee
bv the like application Of one hundred millions
every six Inaatss, n Little over twenty hi
years.
At the highr rate the applied in the frs
wear in reduction of the principal of the debt weuld
he thirty-hv millions of dollars; in the last OIL
thirty second year, when the interest would bt
diminished 10 little line millions, about ont
hundred and ninety-one millions Of the uniform
annual payment would 60 to the reduction Of th'
principal.
On the assumption that the debt may be fundeC
al FIVE per cent, fifty millions would be sppiicabl'
10 the reduction OF the principal in the first year
and in the twenty eight last year OF the perioC
the interest falling 10 less than eight millions
one hundred and ninety -two millions of the aunua
payment would 60 TO the principal
The Secretary here enters upon an elaborate
calculation of the future taxable wealth of thi
country, which want of space obliges us to omit
The figures are daz hing and bewidering-
HOW TO PAY OFF THE DEBT.
N After earefal rejection, the Secretary conclude
that no act Of Congress Except for raising tht
necessary reyenuel would be more acceptable Il
the people, or better caiculateu 10 sbehEtHeh I'M
national credit. than which should provide
that two hundred millions Of dollars commencing
with the next fiscal year, shall be annually applied
to the payment Of the national debt. The esti
mates Tor the next fiscal year indicate that much
larger amount could be applied without an IN
crease of taxes.
Before concluding his remarks upon the rationa
debt. the Secretary would suggest that the credit
of the fve-twenty bonds issued under the acts Of
February IS, 1882, and June So 1864, would BE-
improved in Europe, and consequently, their mar
ket value advanced at home, if Congress should
declare that the principal, as well As the interest
of these bonds is to be paid in coin. The policy
of the Government in regard TO its funded debt Il
well understood in the United States, but the Ab-
sence Of provision in these acts that the primer
nal Of the bonds issued under them should be paid
in coin, while such provision is contained IN the
act under which the ten-forties were issued, has
created some apprehension in Europe that the Ave
twenty bonds might be called in ct the aspiration
of Eve years, and paid in United States notes
Although it ia not desirable that our securities
should be held cut of the United States, Il Is de-
sirabe that they should Be Of good Arsdit in for
ern markets on account Of the influence which
these markets exert on our own. u b, therefore
important that oil misappreheneions on these
points should be removed by Al explicit decla-
ration of Congress that these bonds ere to be paid
in coin. M
STATE TAXATION OF GovHRNhENf BONDS.
In view of the fact that the exemption of Gov
er lment securities from State taxation H. by many
D ,rsons considered an unjust discrimination IN
taeir favor efforts may be nade e Induce Congress
{, leeislaae upon the sotjoct = tAsir tsxation. Vi
course, the existing exemption from state and