Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-06-10

nizcd having at che time raised the total to
nearly 81. OO0, 900. 900. No exact statement
on this point can be obtained; but 1t is not an
exaggeration to say thatwe have paid off nearly
six hundred millions of the debt Our fund
ed debt is below two thousand millions, all
the rest being in condition to be easily
reached and disposed of. F.
The published debt statements nre aptto de-
deiye the uncommercial public, in conse-
auence of the purchased bonds in the Treas
tiry not being deducted from the debt bearing
coin interest. Readers will find on examine
ton that the practice is to add this to the
Treasury cash balance and deduct the same
from the total debt. As these purchased bonds
are not yet cancelled, the interest is regular
" paid on them and constitutes part of the
cash assets of the Treasury available for
the purchase of new bonds so that the
reader will thus understand how it happens
that this reduction of debt must continue per-
force. The larger the amount of purchased
bonds becomes the more will this balance
available for the reduction Of the debt become
permanent and prominent; so that however
much we may reduce the taxes, this process
will go on. The only way to get rid of it is to
abolish the sinking fund, cancel the purchased
bonds outright, cut down the internal taxes to
the lowest possible notch, and let the debt be-
come permanent. We have no desire to see
this, although do not wish to ruin the
country in the effort to extinguish the debt.
i moderate reduction ought TO be continued
regularly and We believe that the general
sentiment of the country would sustain it.
With the interest its present rate we should
pay the debt over and over again in the shape of
interest in the course ofyears, land still have the
principal pressing down heavily upon our en-
ergics The regular annual interest is nearly
4 81. xxSI N1In
mostly in gold and this we have now been
paying for about six years, so that we have
paid out in this way some seven hundred dol
lars for interest alone. We need not go into
a calculation to show that at this rate we
shall, in the course of twenty years. have paid
the whole debt in the shape of interest, and
still have it resting upon us. We belong to
class of old fashioned people who believe in
paying their d BITS honestly in full, and as
soon as it can be done conveniently and with
out loss. Hence, while we are in no hurry
to get rid of this debt at all hazards, we
want to go on paying something on it and re-
ducing it.
We have endeayored to reach some method
of funding this debt at lower rate of in
tercst and in this we are in accord with the
national government and the maJorlties in
Congress, just as we are in the policy of
reducing the debt. But every attempt in that
direction encounters most determined re-
sistance that we regard with alarm, since the
misguided persons who are doing this are
ieopardizing far greater interests than their
own, and are fostering that pernicious agita-
ton on the debt question that tends to practical
reputation 1t is. in our judgment, not
question of choice, at all. This debt must be
either funded at a much lower rate of inter-
est. and that as soon as psssible, or it must be
paid off. If any man supposes that the peo-
pie of this republic will contentedly saddle |
themselves with an irredeemable debt, bear
ing interest at the rate of one hundred and
thirty millions of dollars year, he is very |
ignorant of the temper of his countrymen, |
and has paid but little attention to their popu-
lar disposition. Whenever some severe pinch |
of hard times comes upon them. the pressure |
of taxes to pay this interest will excite their |
and afford a fit theme for the dia-
tribes of hot-headed demagogues.