The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1867-09-26
When the Public Debt Should be Paid

When the Public Debt Should be Paid.
To The Editors Of the journal:
without intending to discuss ali the
questions connected with our finances,
such as taxation of the bonds, retire
mcnt Of the National Bank currency,
etc, / beg leave to call the attention of
your readers to the subject OF the time
of payment Of the national debt
The total debt on the first of the pres
ent month, less the amount of cash in
4, the Treasury, was s2,492, 7s3, 365, and
includes 1865, l64, S44 of greenbacks or
legal tender notes, and 1923, 1892, 172 in
fractional currency. The total bonded
debt, at the same time, including old
bonds, issued before 1861, was S1,732,-
Z 361, 510,4s.
OF this amount one hundred and
ninety eight millions four hundred and
thirtyone thousand three hundred dol
lars ($19e, 431 ,300) draw five per cent
interest and fall due in 1904, and arc
what are commonly called "Ten For
ties Two hundred and eighty three
millions six hundred and seventy six
thousand one hundred dollars S283, &c.
1907 drawing six per cent interest,
fall due in 1881. Twelve hundred and
five millions seven hundred and ten
thousand FIVE hundred dollars Isl. POS,
10000, draw six per cent. interest
and fall due in 1882, 81, IS, and 81, and
are what are commonly called g Five
Twenties." The interest on all these
bonds is payable in coin. There were
outstanding on the first of the present
month four hundred millions seven hun
dred and eighty six thousand and TWEEN
ty, five dollars, (S400, 7S6, 025). Of three
years Seven Thirty notes, due in
June and July, 1868.
The law creating the . Ten Forty )"
bonds provides that the Government
. shall have the right to redeem them at
any time after ten years from the date
of their issue, and, this right of re
dempton will accrue in 1874. The law
creating the - five twenties - provides
that the Government may redeem them
at any time after FIVE years from the
date of issue. aud this right of redemp
ton will accrue in regard to these al
ready issued in 1S6f, 90, 20, and 10.
The right TO redeem these different
bonds at the expiration of five and ten
years, as above stated, is mere privil-
eye reserved by the Government to be
exercised or not according to its con-
venience, and there is no moral or legal
obligation to pay off one of them an
hour before it is due. When these laws
were passed it was supposed it might be
to the interest of the Government to
pay off the debt, or some portion of it,
before it was due, and the right to do SO
was accordingly reserved.
1t is now proposed by Democratic
politicians that the Government shall at
once pay off in grcenbacks all the bonds
which it has right to redeem, and
shall continue 10 do SO from year to
year, as the light to redeem shall accrue.
until the whole is paid. which would
thus be done in seven years and the
| more violent are insisting on the imme
date discharge of the whole debt by
compelling our creditors to take al
| equal amount Of greenbacks to be issued
for that purpose.
| The latter proposition would require
the Immediate issue of more than two
billions Of greenbacks, and the former
| the issue of like sum within sever
| years, and either would be clearly fata
/, to the credit and prosperity of til,
! country.
Of the g five twenties,' five hundred
and fourteen millions seven hundred
| and eighty thousand and fifty dollar.
! were issued in 1862, and are not due
! until 1882; but the Government has thu
! privilege of redeeming them in 1867.
According to tho last monthly state
ment of the Treasury Department, there
arc now absolutely due and must bt
paid on prcsentment. various notes
bonds, and certificates of Indebtedness:
amounting to nineteen million four hun
! bred and forty thousand three hundred
| and seventy five dollars and eighty-sev
en- cents, $50, 40, 375,s7.) There are
now six per cent. bonds falling due II
| 1867, '6S, and must then be paid
amounting TO fourteen millions eigh
| hundred and sixty nine thousand sever
| hundred and ninety one dollars ane
! eighty cents
There are three years compound inter
est notes, which will fall due III 1898
I and must then be paid. seventy eigh