The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-10-13
The Public Finances.

FROM TIE Ndti0l.
The reduction of the principal of the public
debt, which was commenced year, or rather
fourteen months ago, progresses steadily and in
geometrical ratio. AT the beginning of the
fiscal year 1866 the United States owed
So, 6S2, ,593, 600. At that time the Government
was busly engaged in disbanding and paying
Off troops, settling claims for damages, and
liquidating disputed accounts; these sources of
expenditure neutralized the Secretary's attempts
to reduce the debt, and on the first of April,
1866, the aggregate So, 705, GAG, 900. By that
time all the large claims had been adjusted, and
the troops and sailors paid off, the surplus of
revenue over expenditure was available for the
reduction of the principal of the debt. 1t was
vigorously applied to that purpose. Reductions
were successfully reported in June, July
August and September; and now in October
the Secretary reports that the aggregate had
been brought down to S2573 1886, 900, being a
reduction IN six months of no less a sum than
3S,30S574 A further reduction of S22, 500, 900
(belng the temporary deposits of four per
cent? will be made on the 25th Of this month;
the money is on hand for the purpose; so that
on LIST November the public debt will be at
least Sl6O, ,6O9,574 less than it was on lst April
last.
At this rate we are reducing our debt by
tinue TO do So the entire debt will be paid off
il about eight years and half. Should we be
enabledto curtall our expenditures by reduc-
tion of the army and navy to thoroughly
peace standard, and should our revenues In-
crease, as they would do were the revenue sys-
tem and customs tariff simplifed and improved
this period might be shortened by one or two
years. 1t is quite within the range of possibi-
lty that before the Fiye-twenties of 1865 nature
they, the. .longHsiXes and the Ten-forties may be
The only outstanding Obligations of the United
States Government.
These are astounding predictions. But not
more astounding than the facts When the war
ended, the most judicious fnanciers were of
opinion that the aggregate debt would foot up
$4,000, 600, 600, and would not fall below that
figure during the present generation. II is
already down to nearly $4,000, 900, 900, and is
being reduced at the rate ofS22, ,000, 900 month";
The aggregate public revenue this year will not
be less than 5000, 900; the expenditure, in
Guiding interest on the public debt will hardly
exec ed, If 1t amounts to, $780, 00O 600.
In view OF these facts, il is amusing to read
the european quotahons of our bonds. Five
twent'es are selling in London Is and l6 per cent
below the British consols, which only Weld al
per cent. per annum. ' '2
Secretary .McCulloch in his lannon's Fort
Wayne speech, and subsequently in his report
TO Congress, in December last exnressed q
desire to begin the reduction of the national
debt by curtailment of the greenback cur
rency. He has not done so, He began nv
paying off the debt certificates, and pursued
call. This was not only in accordance with
the legislation of Congress, which, under the
lead of the high-tarif men, set its face stead
fastly against all contract on of the currency
but was an imperative practical necessity. Sc
long as he owed over 500, 000, 900 on call OF
within brief periods, the Secretary could moi
afford to pursue policy which would have
embarrassed the money market, and led to
withdrawal of his deposits. This danger il
now passed. He has paid of all the deb
certificates. By November l he will have palC
off the last of the temporary loan. From tha
day he will be free to pursue the policy which
the public interests require without fear O
its Iecoiling upon himself.
ave are not however led to believe that h
WILL at least at present, attempt any materia
curtailment of the greenbackkcurrency. Their
are still aAoat $l65, 600 900 OF compound lega
tenders; and though these, by reason of tn
interest which has accumulated upon them
have long since ceased to circulate as money
they are still a disturbing element being I
legal tender for their tace, and it may be wis
TO get rid of them by buying them up. 1t i
likely that for the next four or five month
the Treasury surplus may be employed in thi
Way. Next gear the first series of the Seven
ihirtles mature. Holders have the right L