, 1866-05-07
Il FAVE PER CENT THIRTY YEAR
LOAN.

Senator Sherman has introduced . bill au-
thorizing the Secretary Of the Treasury to |
sell bonds at not less than par, drawing 1--WE
per cent interest, payable in thirty years,
principle and interest In gold. These bonds
ere to be sold as fast as the present $50 and
40 bonds tal1 due. and with the proceeds
they ire to be lieuldated. When a bond
becomes due, the Government has the option
to pay il or with coin or currency, &C.
cordine 10 the stipulation, or 10 extend 1t
fifteen years longer, paying six per cent inter-
est thereon. Those issued in 1867 will be due
next year, and the last batch sold will mature
in 1860. A part Of the bonds called 1-S0's will
mnturc next year, MS they bad but three
years 10 run. Within three years eighteen
hundred millions Of public securities must
either be paid of or extended,
a; exchanged for other bonds.
The bill introduced by senntor Sherman
provides that The consolidated five per cent.
bond shall not be taxable either by the States
OF by the general Government. If 1t were al
lowed TO be taxed, ii could not be sold nt par
perhaps not nOove ecventy-fye cents on the
dollar. It is held that the public would
lose more money on the sale Of the bonds,
than they would ever gct back In local taxes
which is undoubtedly the fact. Suppose
thousand millions Of our National debt are in
si1 per cent. Fivo-tweutv bonds, and an equal
amount Ill three year Seven-thirty per cents,
the interest on these would be rs follows:
On the 5s0s. II 0n 0o
On The s-so:. In currency. 10
Total intereet.. Sl3aOO00l
Convert these bonds into Thirty year Fiye per
ccLts, and the interest will only amount to
4100, ,000, 900; which shows saving Of
500 600, 900 per anunm. It is proposed
10 set aside as a sinking fund the amount of
money thus saved on the rate Of interest ; and
the calculation shows that the saving Of
interest, thus applied, viii pay of the last
dollar Of the National debt in hiriyttoo years.
Any taxpayer With grain Of common sense
will perceive that this is a wiser course to
pursue than to allow the States to tax the
National securities and thereby depreciste
them. It is very questionable whether q
thirty year loan drawing seven per cent, pay
able in gold, principal and interest, could be
sold at par If subject 10 State taxation, except
for expectation. The effect Of local taxation
on Federal bonds would be two-fold: first,
10 dcprcciatc their value very largely second,
to send them out of the country
to Europe. II may be taken for granted
that Congress will not be Influenced By
Comprehend clamor to the extent Of allowing
municipal corporations and local govern.
n,cnts to stab the National credit. The credit
O, tue Government Is Of too great value to
be impaired for the sake of gratifying Its enc
mics. The rntes OF interest now paid by the
Government, are as follows: five per cent. In
gold on the 1910 bonds: six per cent. in gold
ON the 5-20 binds; seven and third pc,
cent in currency on the $50 bonds
The Pacific Railway construction
bonds draw si1 per cent currency Interest
Call loans draw Eve per cent. INTEREST," aue
Certificates OF Indebtedness, six per cent
The amount Of national debt on which inter
cst Is no~ paid, ,,ie T. ,4oo, COO 900 in round mum
bc7s, the interest on which averages Elk aut
half pel-ccut. half coin and half currencv
making total interest Of $156 ,o00 ,000 pc
annum. At Eve per cent. the total tntercs
would be slGo, ,00o, ,Oo0, which would elect
saving OF so6, ,0U0, 900. Let us calculate ho,
much ul this sum would be saved to Ilinoi:
At the last Genius this State coutaIue
1,7l1 GOO Inhabi,ante, ind the whole unio
31.5oO0o0 Aflcr making fair allowance 70
our rapid growth, and for the proportion {
taxes which the South will hereafter pay,
iseafc to calculate that Illinois, for the nc,
fourteen years, OF until 1850, will pay on
,...h ,r +hn Nattnna1 taxes fthen
ea'et,.tn y. - 49, r..- ~. ~ ccnf ho,
consol'oateo ~ nnS ~ ' Is Ias- the n,1no
w'li save svo,uuovv vi, r. =. 500 - as, ~ m ,,ar a
snare o. the SAVING .ss ~.a ue .a,rn,ns;on :. 4,
nuu, "nlen Al .ne o"sos sss. e - ~ hv u
e,nes as mueA a. "suIa 49, essa
s'1ue . " ta@sug seoetat oouus ,,a
nu' - GU 1,a,s I'VE PEI sen. 'n Iss,,aab @ tht,
sou eaH. ~ p' 80 stsle.aty ts s,.ou n1as" 70,
1na. " .,,'ni @ ,nn NV '.runs T a.,ae1 s.r,,,
IN .t, =.