The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-06-05
~S9SVV5VVV1OO
How It Can Be Paid by the
Present Generation
Each Years Estimates from
1866 to 1851.
The Faith Of the Government
Preserved.
PLAIN FIGURES AND FACTS.
THE DEBT JUNE 1, 1865,
&C., &C., &c.

Now thst the excitement of the has passed away
the subject Of the national debt and how It Is to be
paid Is begnning and will continue to engross large
Ahare OF public attention Already number Of schemes
TOR renewing the mighty incubus have found their way
INTO print; but with two exceptions, they have
boon impractcable, beset with many doubts and
difficulties to be next to impossible of execution The
great obstacle in the way Of paying of dIbt Of three
thousand millions by subscription would be found in the
want Of sufficient number OF persons able and willing
collectively TO subscribe the necessary sum- The grad
usi reduction Of the rae of ON the whole debt
70 three per cent, and The appropriation OF a large
amount annually to sinking fund for reducing the prn
cipal perfectly feasible pan but one which would
be less satisfactory To the bondhoders
chat embodied in the following series Of tables which
we have prepared In order TO show that all throe
hundred and thirty millions OF the debthe amount
which we have estimated the basis of the circulation Of
she national bankscan be liqudated without reducing
The rate OF interest in any way breaking faith with
the bondholders The only exception we make to this
rule is the reduction Of the interest on the bonds in
&on deposited by the national banks with the Treasury
70 three per cent for these institutions receive in
return for the same ninety per cent OF their valpe in
notcs, with some trfiing exceptions they are not in
equity entitled to interest," and Congress will do we'll to
have calculated this reduction from the fiscal year
1ses-Yo
Az the fvs-twenty bonds redcemable at any time
after tho expiration Of five years from this date we have
provided for their conversion into per cent stock
% soon % the option accrues to the government Con-
gress WILL however, have meanwhile to authorize such
measure We have allowed for the reduction of the
rency Issued directly by the Treasury at the fifty
muions year, commencing In lS69-70, by which pro-
cess six hundred millions might be withdrawn in twelve
years leaving only the national and State bank notes in
circulation
In estimating the revenue we have allowed for two
hundred and seventy-nve millions a year in 1s6G-67
two hundred and egytyhve millions in 1ss7-6s three
hundred millions In 1S8soe, and onward to ls72-73
although the receipts for the year ending June next
will probably be less than two hundred millions But il
must DO remembered that the effect Of the amendments
20 the Internal Revenue passed the last session OF
Congress has not yet been fully e that the Southern
country will be likely TO contribute q considerable sum
0urng the years estimated for In the year 1919
and thenceforward have added twenty millions to
the probable receipts for internal revonue making
total Of three hundred and twony VIC have also added
one million year to the customs receipts beginning
with eighty millions in lSe7- and ending with ninety.
three millions in 1ss0-s1.
In estimating the probable expenditures we have al
lowed for the reduction Of the army TO the peace footing
OF sixty thousand men. We have added five hundred
thousand dollars each year. in progressive SCALE to
the expenses Of the civil SERVICE and to Offset have
reduced the items pensions and Indians by similar
amount being reasonable expect gradual reduction
Of the pension list by the decrease Of pensioners
In drawing up estimates for long period consider
able allowance necessarily be made for foreign and
domestic contingencies well as the fluctuations of
trade and and expenditure. Both the public
income and expenses may differ widely from our igurcs
but is not impossible that have fixed
stand point the variations each year may nearly eqolze
themselves in the end provided remain throughout
in state Of peace We begin by estimating the gross
income for 1s6687 three hundred and cgbty-seven
Millions and the gross expenditure at three hundred
millions and end by estimating the gross income for
1ss0-e1 s four hundred and eighteen millions and the
expenditure at one hundred and fcry-Gve millions six
hundred and sixty eight thousand hundred and
thirty four dollars Ii will be seen by com
parisou which give in another place that
we have made considerable allowance for the
increase OF expenditure well the increase
Of revenue for while the aggregate civi military and
naval expenditures OF the country only sixtysx
millions three hundred and forty six thousand two han
dred and twenty four dollars in 1859 Fave allowed
for an expenditure Of hundred and thirty millions
Tor the Same purposes In 1881.
With this introduction present the tables and their
accompanying notes for each year consecutvely 1t will
be that the result OF caislaons is TO leave
net surplus annually TO be carried 10 the sinking fund
for tho reduction Of the principal OF the debt estimating
It In tho beginning at three thousand millions This
balance IL Of progressive character commencing with
eighty seven millions in lsCe-67 aud advancing TO
two hundred and seventy-tw millions three hundred
and thirty ono thousand eight hundred aud sixtysix
1seC-67.
YIsoAL YEAR COMMENCING July l, 1865.