The Portland daily press., 1871-08-09
PUBLIC CREDIT,

Inc commencing year OF the War-Unlted
States live per cent. stock, redeemable in
1865, was sold in the market at s9.47-the in
terest payable semi-annually in gold. As
Stunning the period at which these bends were
to run at four years, the rate of interest real
lied to investors, at the market price, was
S.14 per cent. In March, 1869, the currency
price in the market of the United States six
per cent securities, redeemable in 1881, inter-
est payable the 1st of January and the 1st of
July respectively, was 117.75, including ac-
crued interest. The average market price of
gold at this time was 13156-making the gold
value of these bonds. including accrued inter
est, S9.12. Deducting for accrued interest
81 so, leaves the net gold value of these bonds
SL62. Taking the period for which these
ponds had yet to run at IL years, it will ap-
pear that the annual rate of interest realized
to investors, at the market price, was almost
exactly per cent. The currency price of
these same securities in the market, to wit.
the six per cents of 1881, was in April. 1871.
1862. The mean price of gold at this time
was l1025; showing the gold value of these
securities, including the accrued interest. to
nave been 1878 Deducting Tor accrued in
terest 81 80 shows the net value ot the ho,ds
in gold to have been 1O42 8. ObservIno that
III years is the period for which these bonds
nave yet to run before maturing, we find the
annual rate OF interest realized to investors in
these bonds, at the market price to be IA
per cent.
FROM the foregoing it will appear that dur
ing the period from March, 1S61-the close Of
Inc democratic Administration of President
Buchanan, to March 1869, the close of the
administration of President johnson. NOT
outstanding the expenditures incident to the
wa, mar Iof Inc suppression OF the Democratic re-
peiiien, the borrowing power of the Govern
ment advanced from S.14 per cent. to 7 ner
cent cent. Wnlcn is an increase in the borrowing
power OF the Government of about 16 ner
cent. ana during the period from March 4.
1903, 10 April !, 1911, being the first two
years OF President Grants Administration.
the credit OF the Government was still fun
ther advanced from per cent to b.44 Der
ceDt.-an in the borrowing power of the
government, for the latter period of
nearly twenty-nine per cent. and
from the entire period from March, 1861. to
April, 1871, of nearly so per cent. About the
same Date the currency price in the n arket of
tne Io-4Os issued in 1864 five per cents)-as-
srna mat they bad yet 30 years to run
was lio-the price Of gold being at the time
lll-showins the market gold yalue of these
bonds TO have been 97.46 CalcuIatino frona
these data, it appears that the rate of ;ntor.
est realized by investors in these secnr;t;a.
was SIG per cent. S''u'i''es
The recent market price of the same secu-
rites indicates that the rate of interest real-
tDCu W ~ 'SoeNAS 10 - 10 pei CcHJ-Say Z-lO.
Taking 2-20 per cent as the present borrow
ing power of the government. or rate of inter
est reylized to investors, we find the appreci-
alton of the government credit for the period
under consideration, and applicable to the
principal of the existing public debt ($2,392,-
10Y, ~ S9) to be S615,000,000 as compared
N W,on ddS69; and as compared with 1861, $685.,
FROM Inc foregoing it will appear as follows:
Ftrst; That in the first two wears and one
month OF the Administration Of Pras;dont
GranC tnere mas been an actnal roaat:c |
tne pupnc debt to the amount of CO.. IL vi
663.74. nC Oh S2l5, 1885, |
-, Second: That the annual interest," o,,
the people has, within the same na. SlafSe TO
reduced 10 the sum of $I2O62 997 aa" u, oeen
quently atording permanent animal use
from taxation TO that amount. iehei
1hUd: That the net gold disoou,. - |
ly realized to the public Treasury ON ,, aeluai-
chase OF bonds, by which purchase th arc Pur-
mas S neen manly IAN reduced,is SLABS ,s3s 5e
Fo@rM: That, in consequence of The m oo
ures ana policy OF the Republican Conarass
ana AuIninistratlon, the public cred,t
though greatly disturbed BY liz war r'eu1t, al
ed during the period from the ea "., auVanc-
the year 1861 1.-THE close of the Demoyp part OF
ministration of President Rnchantlc ad-
March u S69-reaching an aggregate arI 10
tlon, as applied to the then existing va JT,a
ana principal of the public debt, of $3e5 600.