New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-05-12
ORR NATIONAL DEBT.

The United States owe a Public Debt OF nearly
Three Billions of Dollars, most OF it drawing or
10 per cent interest Now that the War ~ over the
Union saved, and our Expenditures SO reduced that
we are more than paying our way, so that we arc
contracting no more debt but rather paying off, the
Government is about to make all effort to reduce the
rate of interest to fire per cent, and appropriate the
money thus saved to the reduction OF the princpsi-
a policy which, if adopted and sterny persisted in'
will pay the Debt entirely within about thirty years
There is some wild talk Of this project as liquidation,
but there is no shadow of truth in this Every exist
ing loan or obligation is to be paid according to its
face Every one who has lent the Government money
at certain rate is to have that rate paid him regu-
larry till his loan falls DUE and then he is to have bis
principal according to contract. But the Government
can borrow in peace with diminishing debt, cheaper
than it could in war, when we needed to borrow
Fifty Millions more each month; it therefore pro-
poses TO borrow at five per cent the wherewthal to
pay at maturity its loans drawing six or seven and
thirty -hundredths per cent. Then, by continuing to
pay into the Treasury only so much as We would have
to pay if the interest had not been reduced, We can
very soon wipe out our great Debt.
- But can the money be borrowed at five per cent
We hope it may, and trust it can be, becausc-i'
The Government is sure pay 2. Whoever mas 'oV-
eminent bonds and needs money can borrow on them
as collateral at lower rates. and with more ease than
he could get loans on any other security j. They
are to be absolutely free from taxation, Federal State,
or Municpal whereas all other securities are taxed
most of them heavily. 4. They can always be sold
ohand for cash. and with little loss. These consider
atons, we hope will induce thousands to prefer these
at five per cent to other Securities at six seven.
Yet this is so great and benefcent an undertaking
that may well command the best efforts every good
citizen There is no man among us, however rich or
poor, who will not be benefited by the intended con-
version of the Debt If We estimate the Debt as
mortgage Of ten per cent on all private property in the
Union funding i at five per cent. will add at least
two per cent to the net cash value OF oil the property
in country.
Now then good citizens, let us all be prepared to
help when the new American Consol is brought out
If we have any form Of Government indebtedness
soon to fall due let offer to take stock in the new
Loan to its amount-assured that our bonds VIII be
above par within five years. If we are not already
creditors of the Government let Us resolve 20 become so
if possible By subscribing to the Loan No matter
though We have but little to invest let invest that
little; assured that there ten investments less
profitable where one is more so. Let resolve that
the new five per cent, whatever its amount shall be
promptly taken for, if that should be filled at once
there will be no trouble thereafter.
Let Congress becarefu not to oyerdo the business
of reducing taxes One calls for the abolition OF all
Taxes on knowledge, that is, on printed matter;
another says, Take off all taxes on Manufactures;
third SAYS Make Cotton Free, &c, &c. We heartily
agree that these taxes not deghtluin fact taxes
are not luxures, any how-but that will be dark day
for our country wherein Congress so reduces taxes as
10 impair the National credit II would cost bank
rupt or dlscredited Government enormously to con
vert or renew such Debt we must fund
afresh within the next few years. and Fifty Millions
subtraccd from the National Revenue now may cost
us Five Hundred Millions in the end. Keep the
National credit high, even though we have to pay
little heavier taxes until we get our Debt iundedi for
it is far better to pay five cents per pound on
Cotton than to have TO pay premium on the re-
newal of our great loans