New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-27
THE NATIONAL DEBT.


WASHINGTON, Jan. 2G-Treasurer Spinner
has written the following letter to Mr. Riddle OF Austria
m who has suggested plans for the payment Of the debt
of Great Britain and this country:
TREASURY OF THE UNITED STATES,
WASHINGTON, Jan. q, 1870
My DEAR SIR: on the 25th OF February,
1sg1 Congress passed law In which II Is enacted THAT
all duties on imported goods shall be paid In COM ana
that the coin paid shall be set apart as specia Iunu
First To the payment in coin of the interest on the
bonds and DOtes OF the United States"
ceptHm Of the entire debt Of the United states be made
In each fiscal year after tho LIST OF july 1892 which Is TO
be apart sinking fund.- and the interest OF which
in like manner be applied the purchase or payment OF
the public debt the Secretary Of the Treasury shall
During the continuance Of the Rebellion this law
imperative by OF the urgent necessities OF the
Governments After the close OF the payments on the
debt made and continued up to the advent
OF the present Administrator by redemp0ns OF various
this way national debt decreased IN less tha
three years and eight months from time IN september
1865 when was at its maximum 20 time IN May, 1902
by an amount exceeding S2i5OCO0O0 AT the last named
time present Secretary of the Treasury commenced
To carry out requirements of the law In letter and
spirit and has, in addition TO the reduction of the
debt In t9 ent m 5onds Of the United states
since the eleventh day Of May last for and on account or
tbe sinking fund TO the amount Of s246i3900 lie also
purohased during the same time in addition such bonds
amounting S7O629I50 which latter bonds are hed by
him as special fund.- subject 10 the action or Congress-
and he recommends in his report that tins large amount
be added the sinking fund.- and that any further pur-
chases that may be made be SO added uhu the gross
amount shall constitute fund equal TO that which would
have been created there had been delay in the exc
cuon Of the law" The aggregate OF the stocks so pur
chased and held by the Secretary, now amounts to
sg5273O5O which there will he received annually in
gold for accrued interest 07t353 which Is payable
semi.annually.
the suggestions OF the Secretary Of the Treasury by
actment OF law When this done, and should the same
annual appropriations be made OF the surplus revenue as
has been made In the last eight months OF te year Just
closed whole public debt will be paid In about 10
years This you VIII e9neede Is quite as lar ahead IN
debt as yours Of Mr.. Gladstones for paying the
tional debt of Great Britain. Whatever plan may be
adopted for the payment OF national debt the FIRST step
settle the question how TO raise the money for the
f S o% % M sSS sooner Sa pe
paid the less it will cost to pay it, the real question for an
Indebted nation solve would to be- How much
annually be collected for the purpose without DONG in
Jury to the prosperity OF the country
or Mr. Gladstones plan. The dRculty lies right at the
starting point. capital is needed to begin with
the two plans correctly Gladstone proposes
his capital by Government sales OF terminal annuities
You propose 20 raise yours by taxation In some form
After that. SEQ Them the plans are essentially
alike except in the amounts set apart, and the conse
quent time required TO eXtinguish given amount OF in
debtedness All your plans seem TO contemplate the in
vesmen Of the interest received after terms OF years.
The interest on six per cent bonds falls due SENT
annually on a part on the first days OF January
and july and on the first days Of May and
on These stocks held BY the government it is on the
same day invested IN the purchase OF other like bonds
terest which Is In like manner invested and so the re-
with a constant accelerated movement Much stress has
been put upon the idea OF siskng und but IN most
It is 10 better, If as good plan for exngushng
debt AS would he tho purchase OF the obligations OF
Government and their immediate cancellation There Is
more machinery, and OF course friction by
Of the and loss OF time in investing and the dangers
OF loss In the aforementioned mode than IN the latter plan
When natlon debt and intends honestly pay
surplus OF money to redeem Its bonds aud to cancel
them.
can we'll see that when a nation is owing debt, that
placed for long term having many years to run TO
maturity at low rate OF interest, aud its bonds
he had large
on hand to be applied To the payment Of the debt, which
be loaned out at higher rate OF interest than Its own
debt bears, that such loan so invested would be good
economy But In all the circumstances are en-
trey different and against such course The rate OF
paid loans is high the ruling rate for
ordinary business loans in the money markets OF the
counry and IL Is payable in gold while the suspel
sion OF specie payments last 1t Is higher than the legal
rate.
expressed upon her face have already To the period
when the Government has the option Ia redeem them by
payment any time, hereafter. As at present
they have quite reached the OF gold the Govern
do te better by selling it's gold ut the cur
ing there It's bonds at the rate current IN the stock
market The present currency price for gold Is 1903. ana
the last purchase Of per cent bonds was made at
ia l0OO The prices Of the two are oNmating 50
the currency premium on gold shall he less Than
tnat on the Government SIX per cent pohus the Govern
ment will redeem them with gold direct. and not by the
sale Of gold aud the purchase OF IT'S bonds, AS now
On review Of all your letters am satisfied that your
plan uf paying on the national debt OF Great Britain is
altogether preferable 10 the one proposed by Mr.
Gladstone IL Ia perhaps the very best scheme for The
purpose that the British Governments could adopt. But
even your cheaper and more speedy plan would never
satisfy the impatient, gO-ahead people OF this country
When they make up their minds to do thing they set
themselves about 10 at once aud they never rest until IL
Is accomplished There elements ut work here mote
favorable 10 the speedy payment 9i great debt than
have ever existed that probably ever can exist III
any other country on the face of the eArth
The naonalilirs Of the Eastern continent, including
crpted-may 10 said to DO nnished They are all at