The Portland daily press., 1872-07-09
T,HE PRESS
TUESDAY MORNING, JULY 8, 1872.
Reduction Of the National Debt under the
Administration of President Grant.

On the first day of March, 1869, the public
debt OF the United States, less the amount
OF cash in the treasury, according to the
ofilclal statement then published, was S2,525-
4o3, zoo vi. Supposing that during the first
iour days OF the month the debt was reduced
by Soo,573 10, which is ,fou-thirtieths of the
reduction Tor the entire month, the amount
of Indebtedness, less cash in the treasury. on
the fifth day of March, 1869. was s2'525.-
42',6o6 VI. On the first day of June. 1872,
the total public Indebtedness, less cash in the
treasury, was 50, 193, ,517, ,37S "a, showing tbe
enormous reduction of 1891 ,9l0. .3O7 97 in the
amount OF the debt since the fourth of March
1869. ~ 1'''i0 0'i
IL thus appears that during a little more
enaii three years OF President Grants admin
lstratioh the public debt existing at its com
mencement has been reduced bg nearly one
seoenh q aus entire amount. European
youlliiis, commenting upon this achievement,
have spoken of 1t with astonishment. as some
thng wholly unparalleled in financial histo-
Iry. 10 appreciate its full value to the people.
however, we must consider the immense saw,
ing which it involves in our public expepdi
lures Jor the interest on the debt eristino ON
he .ttrst day Of June, 1872, tcds less by S22.-
Ooz, 5l9 gear than that on the debt
e5tstang on the first dag of March.
1869. Had the administration adopted the
pohcy OF postponing the payment of the debt
10 an INDEFINITE time in the future, as some
persons have censured it for not doing, this
twenty-five millions q year would still have
to be drawn out of the pockets of the people.
"Ihe money they would thus be compelled to
SINK forever In the payment of interest, would.
In ten years, without compoundng, amount
to the enormous sum of S220, 200, 600 and i'm
twenty-five years would exceed one-fourth of
the entire national debt. The true economy
OF the policy OF prompt payment adopted by
President Grant and his excellent minister of
finance is thus made manifest. Already it
mas produced an annual saving, as we have
seen, OF more than twenty-five million dol
lars, monthly saving of 81. .833, ,543 25, and a
daily saving of S61, ,191 0S. Other plans of
relieving the people from taxes, which have.
from time to time, been put forward, have been
mere temporary expedients, whose sole effect
would nave been to prolong the period, and
greatly augment the aggregate amount of tax
atlon put TINS plan brings permanent relief,
and is accompanied by no haunting thought
OF evil days to come.
Moreover the process of reduction is still
rapidly going on, and every year the diminu-
ton OF the amount required tor interest, rem
ders it possible to apply so much the more to
the payment of the debt. Even the twenty
two millions year already saved, if deposit
ed annually in sinking fund, at five per cent.
interest, compounded semi-annually, would
alone suffice to pay off the entire National
debt in thirty-six and one-quarter years, and
compounded at six per cent, would pay it in
thirty-three years. Well might President
Grant cherish the sanguine hope, expressed
in his letter of acceptance, of leaving to his
successor, whether at the end of this term or
another, a country with credit at home and
abroad, and without embarrassing questions
to threaten its future prosperity.