The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-06

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nrcEssru on rHs rRsAsURr..
Tho Secretary would be grathed N the treasury could
be put n once condition obvate the necessity OF
issuing any more certificates or Indebtedness or
money by any kind Of temporary loans but ne may
for short period be obliged 10 avail himself OF any
means now authorized BY law for meeting current OK
penses and other proper demands upon the treasury
or the debt falling due IN aSS ana o,s so00 nav be-
garded premature TO fund any considerable u
those notes within the next year. but IN view Of inc
pleasure Of the holders will be evidently prudent ior
Congress TO authorize the Secretary whenever can DC
advantage0usly DONE TO fund them In advance OF their
The Secretary has already recommended that no be
authorized SEN bonds OF the United States, bearing
interest exceeding six per cent Tor the pur
pose OF retiring Treasury notes and United States bonds
He further recommends hnt no DO authorized TO SELL IN
his discretion bonds Of similar character 70 meet any
porary loan by such amount a. he may deem advis-
be pay the certificates Of they mature,
prior 1859 that can be advantageousy retired II is
not probable that II will DO advisable even II 1t could
be done without pressing them upon sne market 70 sell
tho next fiscal than will DO necessary TO meet any
deficiency OF the Treasury, 70 pay the and ma
turing obligations Of the governments, and part
or the temporary loan, and 70 retire an amount
the compound interest notes and United 6tatcs notes
sufficient bring back the business Of tho country 70
healthier condition But harm can result from in
vestng the Secretary with authority to dispose OF bonds
II tho condition of the market will justify il, in order TO
anticipate the payment Of those obligations that must
when the whole debt shall be put In such form that
the interest only can be demanded until the government
shall DO In condition 70 pay the principal Ut can bs
easily managed II Is undeniably large, but the resour
Of the country are even now ample 70 carry and
gradually TO red 1t; and with the labor question at
the South settled Terms just to the employer and to
tho aborer and with entire harmony between the df-
feren sections it will be rapidly diminished in burden
tl,a ~ fha mfr xvifho
increase Of taxation
aow rHg RsrIRs NATIONAL GAN IN PAID TWENTY.
Eight THIRTY-Two YEARS.
The following estimate OF the time which would be
required 10 pay tho national debt f funded five per
cent and at five and half per cent? by the paym mt
of two hundred millions of dollars annually the inter-
principal and also Of the dimnuhon Of the bur-
den tn debt by the increase OF productions may not
DO without interest TO Congress and to taxpayers
The national debt deducling moneys IN the Treasury,
was tho 31st OF October 1855, 81 40 1854 750 With
out attempting nice calculation Of tho amount may
reach when all liabilities Shall be accurately
tained safe 70 estimate it, the LIST Of July,
1885, at three thousand millions OF dollars The exact
Of existing indebtedness yet unsettled and the
iurth amount that may accrue in the interval not
capable Of estimation, and the of the
period can DO only approximately calculated but II
will be sac TO assume that the debt will not exceed the
Tbe annual interest upon three thousand millions, II
fofded a ~ per cent per annun, would DO one hundred
and sIXiyhyc millions but II funded at five per cent II
would be one hundred and fifty m lions.
Now, IL two hundred millions per annum should be
applied in half yearly instruments of hundred mil
hons each in paymen. OF the accruing interest and IN
reduction of the principal funded at the higher rate Of
OK per cent the debt would be entirely paid In thirty
two and eighth years AZ 1--WE per cent per annum
b. ndred millions every six months, IN little over twcn-
ty-eisht years.
nrst year in reduction Of the principal Of the
debt would be tbirty-fve millions Of dollars;
IN the last or thirty second year. when when the
nine millions, about one hundred and ninety one mil
lions Of the uniform annual payment would 60 the
duction OF the principal
On tho assumption that the debt may befunded at five
per cent fifty millions would be applicable 70 the reduc-
ton Of the primo pal in the first and In the twenty
eighth last year Of the pcriodtbe interest falling 10
less than eight nions-one hundred and ninety-two
mill ons Of the annual payment would go 10 the prin-
cipa.
and twenty millions of the debt the 8st of Octo.
Der last averages 662 per cent part OF this sum is
DUE another portion will b. payable next year, and
the balance will be due payable ut the option Of the
In 1867 and 1868 II these hundred
and twentyGv mill ons shall be funded or con-
vertcd into 0ve por hts by the year 1859. the
age interest OF the whole debt II be g. 1875 per cent In
tie year 1871 the debt then maturing should be funded
NJ tho rate the average inter st would be reduced
70 6l6 and 1851 70 per MT excepting the bonds for
fifty millions 70 be advanced In aid OF the Pacific Rail
read at per cent which will have thirty years 10 run
from their respective dates The interest OF these bonds
added the supposed fve per cents, would, In 1881,
make the average Of the entire debt 1--WE and three
Of one per cent until the whole should
DO schargcd
In these calculations Of tho average rate Of interest
upon tho funded dcbt the outstanding United States
notes and fractional currency not embraced what
amount OF these four hundred AID fifty iOur millions
may eventually be funded at per per will
reduce tho average rates Of interest upon
the whole d BIT.
BY tho terms and conditions OF some portion Of the
dobt the interest the whole cannot be reduced 10
acy five per cent unless money may be borrowed at
stage oil the process 1t trc below Eve per cent
bonus OF one tenth Of one per cent paid by the bid
excess the probability Of which fully warrants the CAL
cuaton submitted as 70 the payment Of the total debt
ct this rate
OF the debt in July. 1885, must undergo dminuton
before the fund ng In 1867, 1893 and 1890 begins. II
only hundred millions shall be paid or In these three
years the principle, thus reduced 20 twenty nine hum
dred Millions would be exiting ~hed by the process al
ready stated twenty nine years, funded at 81 per
twenty seven years. And s we'll worthy OF attention
that h, ndred millions les principal ri the COM
mensement Of The process Of payment win save four
rate is 81 per ccn4 and three hundred millions II five
per cent
the national resources and these resources are not
strictly speaking capital but the current product Of the
capital and industry OF the country The annual pro-
Duct however, Is found to bear certain ratio to capital
and this ratio may be conveniently and safely used in
computing the probable resources which must In the
future meet the national requirement. for the payment Of
interest aud extinguishment Of The debt
II has been estimated by tho has made this sub
ec study that the products OF ag iculture manufac
forests In THO year 1850 81 rs per cent Of the value
Of the real aud personal property OF the United states
similar calculation makes the products OF 1880 20 per
cent Of the wealth Of tho country in that year
Is fixed by tho census returns. In the calculation
submitted he annual products Of capital and industry
arc taken for conven encc twenty per cent Of the
capital wealth Of tbs country, and the capital OF each de-
nia year OF the thirty that national cebt may
before rs exiting ishment BY the ~ pill alton Of two hum
dred millions per annua TO the payment OF its principal
and interest Is here estimated lpon the basis II its
amount and increase as given BY the census OF 1890 In
tho year 1890 the real aud property OF the Union
valued exclusive o. svesI nj $1A 1888 600 000 or
this amount the STATS lately In Instruction held
COO being an increase upon the like property
In le50 Of 1872 per cent The property OF the loyal
States valued S10 716 COO o00 Increase of 128
per cent over 1850; together averaging decennia In
crease Of 1872 per cent
Now taking the increase or wealth In the loyal States
In the ten years from 1850 To 1870 at 125 per cent we
have their capital In 1s7o s2l Ill 900 00O and II
put the wealth Of the other States at the same figure
In $780, without allowing thing for increase have
capital for 1870 q ST SIS 600 900 This sum gives
the product OF the year at So 894 500 900, upon
layt nf 20