The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-10-28
For the Dispatch.
The National Debt--Hcw 10 Pay IT ana
pnfur,, To Snecie Payments.

Return to Specie Payments.
ASHLAND, HANOVER COUNTY, NA.,l
October 20, 1869.
Hon. George T.. Boutwell,, Secretary Of the
Treasury Of The United States:
Sir.-So much has recently been written
upon the subject of the payment OF the M
tional debt, and returning to specie pay
mcnts, that / feel some ditfidence IN pre-
senting my views upon the subject; but rs
I have seen no similar plan suggested, /
venture to offer them for your considcra-
ton:
The total of The national debt is about
$500, 600, 0C0. The payment Of loS.oOO,Oo
annually would of course require - years
to pay off that amount.
Bv the payment of per cent. Semi-annu-
ally Of the principal, and Increasing each
subsequent semi-annual payment by the
amount OF interest on former payments, 1t
would be paid oil in 235 years.
By the payment Of per cent. OF the prlncl-
pal semi-annually, and increasing each semi
annual payment rs above, it would be9Nald
OFF in 15H years.
But obstacles might intervene to prevent
the carrying out Of either OF these plans:
holders of bonds may prefer holding them
TO maturity. and even enter the mlrNct III
competition with the Government 1or Their
purchase hence ! propose THAT Congress
Shall resolve. to call in the outstanding
bonds and issue in lieu thereof compound
interest bonds. 80 per cent. OF which shall
run not longer than > years % per cent.
not longer than ~ years - per cent. not
longer than u years ID per cent. not longer
than 20 years; and 10 per cent. not longer
than - years. Ten per cent. OF each class
to be paid semi-annually, and the Govern
ment reserving the privilege Of calling in
and paving off any portion Of them III thGir
chronological order rs it may have the
ability to do so. This will insure the pay
ment Of the debt in . years "a compare
lively short period in the life OF 4 nation).
and secure an early return to specie pay
mcnts.
need not enter into recital OF the al
yantagcs that system of gradually paying
of n portion OF the principal debt seni-an-
nually has over the 50 sinking-fund" system
but the following figures will fully DEMON
strate its merits
The Interest bearing debt the United NJ, ma
Interest on same IS Years at per cent $780, OOO
$3.50 900, ooo
II can be discharged on the plan pro:
pose In rs years by the payment o' 40, am oor
about. ............. .'''''''''' -
,s.,,rror .$lOc5, 600, 9OC
An annual saving ol........'''''' -
On the 9sS-year plan the account would
stand thus eo,oo ma n,
intnrcst .: ro.rs nj ucr ccnt... 2JGl 600, u9l
SjOGl GOO. DOT
Discharged by the payment of (abont). SS'S O''
A s,vinp ,r ...,..,. 81 III, 3&5. 95C
An onrIyl SAVING Of ....,,....... A., 7lG y:
On the l53-ycar plan the result would
be: $780, $500. -.
Delhi 2l00, coo, 0O(
Interest lS3 years. S"'.o'V'Vo'
t. .i053. 900, 00(
Discharged by the payment of tabont 1884, 900
4 saving of .............. $T98. Iii. GOO
An annual saving of.............. 81, 1J5 90
Now, compare the foregoing with the
"snking-fund system. In creating 4 sink.
| ing fund the custom is to lay aside l pei
cent. of the amount Of the principal debt
annually for 81 years.
| Thi would require in the case of debt
| of the magnitude Of TINT Of the United
States contribution amounting TO-. ia, 900, 0ot
Interest on the debt 81 years ....... 4@S 900 GOT