Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1873-06-11
The National Debt.

United States Treasurer Spinner has been
writing letter 90 " What he knows about
the National Debt and as it appears to be
characterized by his usual good sense, we
make some extracts The letter was writ.
ten to Thomas Candy Riddle, Esq, Gee.
long, Victoria, Australia, in which he &C.
knowedges the receipt Of certain commune
cations from that gentleman These were
Intended to demonstrate by figures " how
saving Of hundreds Of millions can be
made to this nation in the manner Of the
payment Of its debt, different from the
plan adopted by our government
To my mind" the Treasurer says. - The
cheapest way to pay debt that is subject 10
| the payment OF interest is 30 pay IL at the
earliest day possible. An individual with In.
sufficient capital, engaged in lucrative BUSH
ness, may find 1t to his advantage % defer the
/ payment of a debt, and continue the payment
/ Of interest on the same with advantage 10 him
self ln such case, or in the case ola nation
that has not the means to pay its debt at once.
or in tho immediate future the scheme Of Mr.
! Riddle would, no doubt, work admirably. Not
so, however, with wealthy and prosperous
people. A nation that pays its debt at once.
/ pays it the cheapest. The longer payment is
! deferred, and the more interest Is paid, the
dearer it becomes, and the more it costs 10 pay
| it. OF this seeming truism our people have
\ become convinced, and are acting 10 pursuance
| thereof They believe that the sooner a debt
is paid, and the lower the rate Of interest is
| paid on the unpaid part thereof in the interim.
the less they will have to pay in the aggregate
in its final extinguishmeat. Acting in ac.
cordance with the belief of this principle, our
government is now changing its six per cent
into five per cent. stock this latter being
the lowest rate az which it is, at present, able
to place its bonds.
g And it is now, almost daily, paying every
dollar Of its surplus revenue in redemption Of
its six per cent. bonds; thus not only reducing
the principal of the debt, but saving the con-
| sequent payment OF interest thereon On the
first day of July next there will remain unpaid
only S20S ,6sl 200 Of six per cent stock which
the government will not have the option to pay
at it, pleasure, and this amount will all mature
on the first day of July, 1851, or before that
time. On all those stocks, on the government
| giving three months notice of its readiness 10
pay the principal, interest thereon will cease
Under the operation of this policy, the debt of
the United States has been reduced in the last
fiscal year, in the sum Of 800 900, 1853. "a.
From the first OF March, 1863, when the pres
ent administration assumed the management
Of the finances Of the country, 10 the close Of
the year 1872, period of three years and two
months, the national debt has been reduced
| $500, S95 800 go, making an annual saving in
the payment Of interest Of S2i, 1856 ,06S. I'm
der these circumstances, the proposition seems
TO be plain that government in debt, that
| places its stocks at the lowest rate of interest
possible, and that has the constant option 10
pay, and does pay, in addition to the interest.
any part OF the principal that il has the means
to pay, pays its debt in the shortest and cheap.
est way possible
All the calculations and figuring that can
be made or done cannot be made to prove To m,
mind the contrary, any more than could be
made to comprehend by figures how man can
nv himself ny the walstband OF his breeches
1t is believed that placing an ex.
,stlng debt, that cannot be paid at once, at the
lowest rate Of interest, and 10 pay the princi-
pal as fast as the means for its payment can he
obtained, is the best that an individual or ma.
ton can do. The best investment of a surplu.
Is 70 apply It in payment Of debt thus moi
only reducing the principal of the debt. but
the interest Of the same. This course the goy.
eminent Of the United States is now pursuing
Mr.. Jefferson laid 1t down as a sound principle
OF polltial economy that q national debt sbonld
be paid by the generation that created it.
lhere IS now every prospect that our people
will follow this wise teaching to the letter
Whenever any other nation shall show better
results IA the payment of a national debt than
this people has accomplished, whether il be by
yours or by any other scheme, we will be han
py to adopt the latter plan. In case your plan
should be adopted, have no doubt bnt O. n
gress would gladly award you the five per cent.
you claim IN lie net saving that might be made
~ pursuance thereof over that now in practice
Tor the payment Of our national debt by ony
government" - 01i