Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-08-04
Letter from Washington.
IrnoM OUR REGULAR CORRESPONDENT

CONDITION OF OUR FINANCES = PRoGREs IS
MADE.
That branch of thel congressional Union re-
publican committee which remains in session
here and attends to the state elections this fall
has lust issued an interesting pamphlet on "The
National Finances" 1t is valuable because cor
rect, having been carefully reviewed by the sta
tsticians of the treasury before publication.
The exhibit is very encouraging, not alone in a
party sense. Its figures are pregnant evidences
of the economy and honesty with which our
finances are managed-in matters of collection
as well as those of expenditure. Under vari-
GUS headings this exhibit reviews all the
branches of the fiscal service, and these are
some of the salient results:
1st. On the LIST of March, three days before
Gen. Grant became president, the amount of
debt outstanding, including accrued interest and
less cash on hand, was $2,525, 463, 2eO.O1.
I'd. On the list of April, 1871, twenty-five
months thereafter, the amount due was $780,
697, 596.27.
The total reduction, then, during this period
of two years and one month was $215, 765, 6684
equivalent to $3.50, 626.55 per month
Thus, it appears that the amount of reduc-
ton is as follows:
Reduction of principal. ....... $214 294 4O6.2
Reduction OF principal and accrued ~, 90, A.. 70
Reduction Of principal and accrued
interest, less cash in treasury. . 2l6,165,6 6S74
Sd. Since May, 1869, there have been purchased
and cancelled, by the treasury, bonds to the
amount of $3.50, 800, 10000, for which there was
paid in currency SPA AIS, 1885, the net cost in
A Dho
average premium paid has been about 1871 per
cent. The estimated discount in gold was u
per cent, or total net discount of S14 5s5 $780,
During the same period the average premium on
gold was twenty-one and three one-hundreds
per cent.
4th. At the date first named March LIST, 1884,
the monthly charge for interest on the debt was
$40, 582, 462.5O. On the last named date april
list, 1871 J it was 1851 PIP 81, being reduction
per month of 81 ,O05, 245.s8, or annual decrease
OF $12,O62, 1897 SO.
This is a good showing as far as it goes, and
that's long way; but the facts relating to the
steady
APPRECIATION OF THE PUBLIC CREDIT
Are still more remarkable. From the careful
resume made in the pamphlet under review,
which facts are youched for by Mr.. R. B. e.
lot, so well known in the Bay State as an actua-
nv and scientific statstician, it appears
That during the first four months of1S61 United
States FIVE per cent bonds, redeemable in 1865,
were sold at s9.47 rate of interest to investors
equivalent to s.14 per cent. This is on gold ba-
sis, OF course; that in March, 1859, United
States six per cents redeemable in 1881, with in
terest payable half yearly, sold in currency at
11775, including accrued interest. The average
market price for gold was 1886, making the
gold value of these bonds 1872 Deducting ac-
crued interest," their gold value was 1852. The
first named bonds run an average of four
years; the average period for redemption for
the latter would be about twelve years. The
average rate of interest actually obtained by in
vestors on gold basis will be almost exactly
seven per cent. That was an appreciation of
our credit over ruling rates of 1861 of LA per
cent.
In April, 1871, the currency price of these same
securities was 1862. The mean price of gold
at the same time was HOPS. This shows the
gold value of the bonds referred to to have been
105.7S. Deducting so for accrued interest, and
their net gold value was 104.2S. Ten years may
be set down as the period for maturing. At
that average it will be found that the annual
average rate realized by investors will be at
ruling market prices, but 544 per cent
The appreciation of our credit or borrowing
power in March, 1869, over the last quarter of
Buchanan's administration, is thus shown to
have advanced from S.14 per cent. to per
/ i, ~, hc.rro
| power of the government of about 16 per cent.
And during the period from March 4, 1869, to
April /, 1S71-being the first two years of Presi-
| dent Grants administration-the credit of the
government was still further advanced from
per cent. to 544 per cent.-an increase in the
borrowing power of the government, for the
later period, of nearly 20 per cent, and for the
entire period from March, 1861, to April, 1871,
of nearly so per cent About the same date the
currency price in the market of the 10-40's is
sued in 1864 five per cents)-asSuming that
they had yet 80 years to run-was 10S-the
price of gold being, at the time, 111-showing
the market gold value of these bonds to have
been 97.46. Calculating from these data, it ap-
pears that the rate of interest realized by in
vestors in these securities was 5.16 per cent.
The recent market price of the same securi-
ties indicates that the rate of interest realized by
investors is 5.19 per cent-say 52-1O. Taking
5.2-1O per cent as the present borrowing power
of the government, or rate of interest realized
to investors, we find the appreciation of the
government credit for the period under consid
Grafton, and applicable to the principle of the
existing public debt 1882, 200, 227.s9) to be
$615, 900, 900, as compared with 1869; and as
compared with 1861 1886, 900, O0O."
This is almost argument and illustration
enough, but the appreciation in value of our
"greenback" and national bank currency, is
equally worthy of note.
During the first twenty months Of the present
administration there was an appreciation in the
value of United States currency of at least
twelve per cent. On the 4th of March, 1859,
gold in the New York market ruled at the aver
age rate of 1S1 $40. ON the first of April,
1871, in the same market, the average was I'LL,
being difference of about twenty per cent
The average circulation of greenbacks and
national bank notes was, in June last, about
$71O,OOO,OOO. The actual purchasing power Of
the paper circulation had increased under Grant
not less than $85,000,000, or an average of about
| fourteen cents on the dollar.
INCREASE OF REvENUE-REoEIPTs AND Ex-
PENDITUREs.
By warrant the following receipts and ex.
penditures are shown for the two years from
April 1st, 1869, to March 81st, 1877
| Amount Of cash In treasury
April J. ises, Rccepi:i5o Years sii'i''A 20
! From customs. ........ 1896, 62l ,464 40
| Internal revenue III SO
Sales public lands 6,4e0,372 18
| Miscellaneous.... 6l,5T7,941 l6
| ----sSl1 $685. $40 50
Total net receipts during two years.
and cash in treasury at COM
mencement of the period go. 1926, O9,977 IS
Net Expenditures Years.