New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-10-08
PUBLICDEBT OFTHE UNITED STATES
Statement by the Acting Secretary of the
mountaineering aad Important
Details
TREASURY DEPARTMENT, /
Washington, D. g., September Is, 1872.
In cnhnrn- Indianannlis. Indiana.

W aSlluBLOL4 y. Ss+ DGpttIIDtI 1otG, }
Hon john Coburn, indianapolis Indiana:
SIR-Referring to your communication of
the second instant, calling attention to ap-
parent discrepancies in the different state
ments of the outstanding amount of the
public debt Of the United States on July !,
1862 as follows:
By finance report for 1869, page 20,
1856 603 $50 70; monthly debt statement,
July /, 1869, 81, 645, i7O.294 I6; finance re-
port 1870 June 30, 1869, page %, s., $685.
452,2l3 "a; finance report, 1870 10y the reg
isterj, page 276, 81, 489, 002, 480 So. and re-
questing information respecting the same
have the honor to submit the following
explanations;
The first statement given is a statement
showing the various acts Of Congress au-
thorizing the different issues of the securi-
ties of the United States: Length of the
loans" #when redeemable," ''rate of in
terest," "price at which Sold" amount
authorized, !" amount issued" and amount
outstanding" and the amount above given,
$685. COB g55 49, is correct, which, it must
be borne in mind, only represents the prin-
cipal of the outstanding issues under various |
acts. This statement has uniformly been !
made up from the loan accounts.
The second amount given as the debt
49, 1910, 29i l6-by the monthly debt state |
Lnent July |, 1862 is MISREPRESENTATION: |
the amount of the principal therein being !
81, 597, 722, 983 81, to which is added accrued |
interest amounting to SI7, Al $40 70, max
ing total Of principal and interest CORES.
pOnding TO the figures above given-S2. SIS
l70,294 10. 1t will be seen at once that the |
nFst and second amounts are taken from
different data-the first treating OF princi-
pal OF debt, and the second of principal and
accrued interest, and for this reason are
not comparable The discrepancy then.
to be explained, is the difference between
these two amounts, representing respec-
lively, the principal of the public debt
hu fha hOaOca
955 73-and the monthly debt statement !
July /, 1869, $2,597, 722,983 81, a difference
Of $5S, 88O,972 SO, which arises in the follow
ing manner:
Included in the items which form the az
gTegate of outstanding principal in finance
report, 1869 page xviii, authorized under
various acts, are the bonds issued to the
several Pacific railroad companies. anount-
ing to $58, 638, 800, and $II3,9l5 is of "old
funded debt" which had never appeared
IN any OF the debt statements prior to Jan
uary l, 1870 The following loan accounts,
outstanding appeared larger in the finance ,
report by the amount opposite each than in
the monthly debt statement of July l, 1869,
Tor the reason that the latter statement las :
Will be seen from the following words there
on: = The foregoing is correct statement c
Of the public debt as appears from the c
books and Ireasurers returns on the morn I
ing of the first of July, 1897 exhibited a
the debt as 1t appeared on the first of July !,
DLS udg ldDbT GIan buS former statemPnr- |
and which had items of redemptions by e
the Treasurer deducted from it that did n
not, in the regular order of business, reach &
the books from which the former statement el
was made up in time to appear in the bust n
ness OF the year closing with the date of If
that statement: az
Demand notes. ACKNOWLEDGEMENTS. So 10 r al
One and two year notes.. .......... 922O 90 ~
Legal tenders. ............ 81 865 81 IN
Fractional currency. ......... 526O9 SO nm
Hhaea itnTps tot ORG Dc !
explain the difference between the state Of
Inents under consideration. 50
The statement by finance report, 1870. M
page %, that the debt on June 30, 1869, tn
amounted to So, 588, AS, 2l3 "a, will be found pr
when the following explanations are CON
Bidered, to harmonic with either of the cia
former statements. It may, however. be sal
more clearly understood BY first cOnparing
II with the monthly debt statement of july enl
|, l669-the difference between them being | Dfs
sy,2Q,769 AZ. BY reference to the in Ella
closed copy Of that statement it will IN
% observed that among the assets of We,
ne government, coin and currency will off
)e found Sinking fund, in bonds bearing for
3oln interest and accrued interest thereon, -
s8o6l ,282 OF. These bonds had been pur- sia
hased by the Secretary of the Treasury boz
between May l and June 80, 1869, for the str
sinking fund.-" and paid for from money be Il
q the treasury, and there being at that bef
ime no authority of law for deducting them the
rom the outs standing debt, they were held 20
~ the Treasurer as a cash item and in y
luded in the monthly debt statement as A
ill a part of the outstanding debt Con
.ress, by the sixth section of the act of july -
4, 1870, directed that these bonds should
70 Cancelled and destroyed and deducted
rom the amount of each class of the out SCI
landing debt of the United States to.which
hey respectively belonged.
In compliance Herewith the amount of TT
ne principal Of bonds purchased up to or
uue 3O 1869, 1851, 900, was accordingly Giri
educted from the principal of the debt IA to a
appeared on that date. The further sum TIVE t'a,
/ S0sUfb9 43-consisting of large num- Mrs
er OF items too numerous to be here emu sun
lerated-of accrued interest and premium low
n loans ascertained, by readiustment of ~ ~
ne loan accounts extending over a period RET
fifteen years. to have been carried to the hun
rincipal account, instead of the separate from
counts 70 which they belonged, is here ON
sducted. These two items make the diff end en- i
renee, s9,270,769 43, between the second chas
Id third statements.
The fourth statement, that the register es to
finance Report, 1870, page 286) states the tie
lohc debt to be 81, 489, 0O2, 480 So on June Rish
y 1863, and apparently differing to the ex- GIalI
mt OF Sl67, sol AS Is from the amountren tI
senCeu ny hrst statement, will be founu be &c
7 analysis of the data from which it was Gle
ade, to harmonic instead of to conflict OF o.
TN the other statements. This statement
as made upon the basis of the monthly NJ
bt statement issued July, 1869 with which I'M
will be found to agreed and differs from 1
e other three statements in that it shows
Q net debt of the government, including ~ r
G accrued interest thereon, after deduct -
2 cash in the treasury, viz:
tai debt, principal outstanding (see second
statement 81 597, 722, 1888 81 IVY
cEuea interest. 47,447,3l0 70 w
a. debt principal and interest. 7O29l IS iRs
duct the amount in the treasury, Z, Loo
coin, currency and sinking fund 1856 I6T8l3 SO SiaS
count of public debt, less cash in sag "a
IA Z '''' ~'fo''Oo%,4oV % have
The four statements may be summarized n mi int
the following manner: sor3
The first is an exhibit of the amount of and !
principal of the United States securities of tn
Pacific railroad bonds, issued under furth
ious acts of Congress, outstanding June ba rH
1872. At at hi Is
he second is q statement of the prinoipaI Clel
the outstanding debt, including the ae- oc2
ed interest thereon, with the Pacific
road bonds excluded.
he third shows the outstanding princi- FIFTH
of this debt with the sinking fund de-
ted, in accordance with the act OF Con SfpS
IS of July IA, 1870, and exclusive of the
ifc railroad bonds.
he fourth is a statement Of the net debt I'D
be United States-principal and accrued dere red
rest-with the cash IN the treasury de- in the
ted. Mrs.
le publication Of these statements BY n9 op