New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-11-04
ELNANCIAL PROJECTS.

Our readers already know that we have the
smallest possible faith in financial legerdeman.
We know that a surplus of income over eXpen-
diture. if properly applied, will gradually re-
duce, and ultimately extinguiSh, ever so large
a debt; hence we tenaciously advocate the
keeping up of our Revenue, the reduction of
Expenditure, and the devotion of the surplus
to the payment of Debt. That Is about all
there is of our plan of Finance. But others
may be wiser, and we give a fair hearing to
so many of them as we can. Here is one more:
ASHLAND, HANOVER COUNTY VA, oct. 90, 1869.
Hon GEORGE T. BOUTWELL,, Secretary Of The Treasury Of
the United States:
SIR: SO much recently been written upon the sub
ect Of the payment the National Debt and returning
to specie payments that feel dfdence in present
ing my views upon the subject; but as have seen no
similar plan suggested venture to offer them for your
consideration.
The total of the National Debt is about s2,5OOOOOOOO
The payment of S1OOOOOOOO annually would Of
quire 25 years to pay OF that amount
BY the payment OF per cent semi-annually OF the
principal, and increasing each subsequent semiannua
payment by the amount Of interest on former payments
it would be paid of in 23i years
by the payment OF per cent Of the principal semi
annually and increasing each senannual payment as
above, il would be paid off in 15i years.
But obstacles might intervene prevent the carrying
of these plans; holders Of bonds prefer
holding them to maturity. and enter the market in
competition with the Government for their purchase;
propose that Congress shall resolve to call in the
outstanding bonds and issue in lieu thereof compound
interest bonds 30 per of which shall longer
than years. 25 per cent not longer than 10 years. 20 per
not longer than 10 years. Is per cent not longer than
20 wears and 10 per longer years Ten
per cent of each class be paid semauuualy and the
Government reservng the privilege OF calling IN aud
order as il may have the ability This will insure
the payment Of the debt in Is years "a comparatively
short period IN the life OF nauon ana secure an early
return 10 specie payments.
need nos enter into recital OF the advantages that
system Of gradually paying of portion OF the principal
debt semi-aunuay has the 'sinkng fund" system
but the following figures Will fully demonstrate its mcrts
The Understanding debt OF the United States
Interest On same IS years at per 55oooocoo
s,25o,OOOOOO
It can be discharged on the plan propose in
25 years by the payment OF Hbout........ 1900
saving Of Oe5COOoOO
An annual saving of.................... 42G2lOOO
On the 28i-ycar plan the account would stand
thus:
Interest 70! years at per cent 296I 100000
$5.O6lOOOOoO
Discharged by the payment OF tabouo.... SgS5C64O5O
saving 1886 go
An annual saving f...................... f,7lG425
On the l5i-year plan the result would be:
Interest ISL years i958oOOOoO
t4.O5S,OOOOOO
Discharged by the payment of tabou s52s53OOO
a
An annual saving Observation-Disclosures. 5li933j5
Now. compare the foregoing with the sinking fund"
system In creating sinking fund the custom Is TO lay
aside per cent Of the amount Of the principal debt
nu1lly for "a years.
This would require in the case OF debt OF the
magnitude Of that Of the United States
contribution amounting S7i40OOOOO
Interest the debt "a 42s4 900
t.90s,OOOOO0
Bnt where the other 81 1886 100000 TO come from
Evidently the Government must pay the whole amount,
and the account must stand
The Debt paid of. and a consequence taxation re.
duced capital forced to seek employment in agriculture,
commerce. manufactures, railroads, and other improve
et5 who venture TO predict the future prosperity
and greatness 10 which this country will attain
Very respectfully, &c, n