The Potter journal. [volume] (Coudersport, Pa.) 1857-1872, 1866-05-08
The Consolidation of the National Debt.

!
The bill introduced into the United
States Senate on Wednesday last, by Mr.
Sherman, to consolidate the national debt
as rapidly as the existing liabilities Of the
Governmentmature into one uniform loan
BEARING FIVE per cent interest, payable in
coin, redoemabIe in thirty wears, and ex-
empt from all Federal, s ate and local
taxation, has attracted much attention,
and is warmly approved by the leading
Journals Of the country. Many strong
reasons are urged in favor Of this import
ant measure. Now that the war Is over
and the current recei pts are largely in.
excess Of the expenditures, it is highly
desirable that a definite and compreheu.
sive settleucnt Of the whole public debt
should be speedily effected, so that every
voter and intelligent schooIboy may know
in round nuu bers the amount and rate of
interest. The people are able and vii
ling to bear the heavy burden Imposed
upon thom, but the fewer perplexities
and variations Of firm and rate of intere
that complicate it, the better. If we say
that the nation owes S2,700,000,000,
redeemaoIe IN thirty years, bearing five
per cent. interest, payable IN coin, the
whole subject can be grasped by every
intelligent mind, and al transactions con-
nected with the purchase or sale OF public
securities, or discussions in reference TO
/ provisions necessary 20 provide for the
payment Of interest or principal, will be
readily understood. In the official state
mcnt eff the public debt, on the lst OF
May, it is divided, first into three classes
debt bearing coin interest, debt bearing
currency interest, and debt bearing no
interest, and each Of these, again, con.
tans several sub divisions caused by a
difference in the rate Of interest or the
time of maturity. Leaving out Of the
present discussion all reference to the
uon-iuteaest bearing debt, which is rep
resented by legal tender United States
notes and fractional currency, the adVan-
tage eff substituting for the 81 ,2AQ, ,000,-
600 Of Indebtedness which is now in ten
different forms, one uniform loan, is read
lily apparent. We say this not to com
plan Of the terms on which the loans
were contracted, because under the ex-
traordnarV difficulties that surrounded
our country during the war, tho manage
meut Of the national finances was Que Of
the greatest marvels of our marvellous
triumph over the rebellion ; but to urge
the imTo. tance of establishing uniform
system now, oD the score of economy, the
contemplated change would be one of.
great importance. Nearly all the debt
DOW bears mere than five per cent. inter
est. Nearly S1,000,000,000 bears six
per cent. interest in coin, and more than
$500, 600 900 bears seven aud three-tenths
interest in currency. 1t is calculated
that the difference between the present
and proposed rate Of interest on S2,000;-
U0O,OU0, if set apart at compound interest
as a sinking fund, would in forty years of
itself furnish more than S., 800, 900, GOO, I
or very nearly enough to extinguish the
present debt. Thus this measure is one
Of the most productive revenue PROPOSE
tions that has yet been brought forward,
especially if we are to credit the trite
maxim that "a penny saved is twopence
earned" Considering the success of the
Government 10 cfTecting large loans while
the war was progressing, aad the ease
with which Earopean nations obtain
money at low rates Of interest. there
should be no difficulty now in obtaining
subscriptions Of all the money needed to
carry CUT tia important project, on the
terms proposed, end we hope it will
speedily meet the approval of Congress.
Press