New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-05-06

cipal H. by the terms Of The contract postponed Tor
longer or shorter ported, and to Government IN
good credit the reimbursement may be further pro
lraoted 1t will, and while thus not denandable ny
the public creditor, may be treated as bufceb ~
|cxpectancy only or as though during the interval
lit did not exist. Tho annual interest accxufng ~
the form which it's actual pressure takes and until
tho time Of reimbursement 1t has no other. ror
all practical purposes therefo, the aspect which
tho problem prese is NOS the proportion Of debt
to property, but tie proportion OF tho current III
terest TO tie current annual prodact OF wealth:
The great bulk Of the British debt is in the form
| Of perpetual annuities, having only capitalized
principal, which the Government is under no con-
tract to pay at all. The holders OF these stocks
have no right to demand the principal at enT tinie
and the Treasury may consult its own policy ana
convenience as to tho extinguishment. In eject
our American loans, for fired terms Of years II TIC
Government chooses at maturity to substitute new
stocks for them, are to all purposes rendered into
annuities while they run; and the inquiry now IN
hand is only confused by considering the burden OF
the principal while that principal is not due Or pay
able.
Interest," On Oar Debt.
On the 3lst Of March, 1905 the total amount Of
the Understanding debt was 81 ISL ,4l6,10 the
annual interest amounting to $40, 1896 ,53l an av
|erage OF SIS por cent per annum. or the bonds
and notes which make the aggregate Of the interest
bearing debt, y6i millions are at 5 per cent;
III millions at 6pcr cent; 1864 millions at 6.4C
per cent the compound interest notes, and 3Jl
millions at 7.30 per cent. Tho compound interest
notes will all BE- due in June, 1867, and the 1908
are payable convertible into per cents in Au-
|gust 1861 and 1868. II must be recollectea, also
that the $40 millions of $40 bonds, issued under
the act Of February 1862, will be payable, st tho
|option Of the Government, on the LIST OF May,
1867; and the 5-20s, into which tho present nm
ming loan Of 73G notes convertible, will in Ike
manner, be payable in August, 1872 and 1873. II
lis entirely probable that all these stocks WILL at tho
period gIated for their optional payment by lac
|Govenment, be changed, il Lot discharged, INTO
per cent loans. We are, therefore entirely safe ~
putting the average rate Of interest upsU our per-
manent debt at 81 pcr cent per annum, payable
lbalf-yesry The average interest upon NE t"'@i
debt, including 5l5i millions in greensacks and
fractional currency, is now but 4.35 per cent per
|auaum. Eere, again, allowance il made FOR the
possible funding Of this largo sum, row bearing 10
interest. thus oysrchatgpg tho account OF he Gov
|ernment by the amount added fer interest on the
Government currency, which will most probabyb b.
kept in circulation until such time a. the revenue
shall exceed expenditures.
Tho actually aecruing interest upon the total
debt for tie current year 10, as before state0,
frsotsn underl03 millions per snnun; but 10 cover
the possible additions OF the loan row On the
market we put /. at lo6 millions. For the year
1866, assume the principal OF 100 millions, and
the interest at 14s millions, thereafter nc debt II
taken al 5000 millions, interest l65 millions. We
.ro now ready for the question Of the
Durdeu or the Interest upon Our Rcsou-ces'
The con,us of 1889 gives Us the data for stating
the wealth of the loyal States slaves excluded a.
10, 7Is millions, and the products Of tie year at
q $40 millions, or 26s percent Of the capital. We
know, also, that the wealth Of the loyal States in
creased in the ten years. ls5CsO ct the ratio Of l9o
psr cent, or 81 per cent per ansum.
Assuming these amounts aid rates a. basis, we
have. for juno, 1865, wealth of lS,ll2 millions,
and an annual product Of 4,3ls millions, "a which
sum the l2s millions Of interest would be 2.9l per
cent. The like calculation for the period 10 which
the longest OF our outstanding 6 per cent bonds
run before they can be converted to lower rates OF
interest would stand thus AL sums stated in MIL
lions Of dollars except the porcer,ases):