Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-06-04
PAYMENT OF THE PUBLIC DEBT.

Gen. Spinner, United States Treasurer,
has addressed letter to Thomas Candy Rid
die, ESQ.,, Geelong, Victoria. Australia, in
which he acknowledges the receipt of certain
Communications from that gentlemen. These
were intended to demonstrate by figures chow
a 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" Gen. Spinner says in re-
ply:
To my mind, the cheapest way to pay debt
that is subject to the payment of interest is to
pay it at the earliest day possible. An indi-
vidual with insufficient capital, engaged in q
lucrative business, may find it to his advantage
to defer the payment of debt and continue
the payment OF interest on the same with adj
vantage to himself. In such case, or in the
case of nation that has not the means to
pay its debt ut once, or in the immediate fu-
ture, the scheme of Mr. Riddle would no
doubt work admirably. Not so, however,
with a wealthy and prosperous people.
nation that pays its debt at once pays it the
cheapest. The longer payment IS deferred,
and the more interest is paid, the dearer 1t
becomes and the more it costs to pay IT. OF
this seeming trulslh our peopie nave oecoihe
convinced, and are acting in pursuance there
I of. They believe that the sooner debt IS
paid, and the lower the rate of interest is paid,
! or the unpaid part thereof, in the interim, the
less they will have to pay in the aggregate in
its final extinguishment. Acting in accord
ance with the belief in this principle, our
Government is now changing It's SIX per cent.
into five per cent stock; this latter beng the
lows st rate at which 1t Is, at present, able to
place its bonds. And 1t 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 consequent payment of interest
thereon.
On the first day OF July next, there will re-
main unpaid only S20S, Gol 200 of six per
cent. stock, on which the Government viii
not have the option to pay at its pleasure, and
this amount will all mature on the first day Of
July, 1881, or before that time. On all those
stocks, on the Government giving three
months notice of its readiness to 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 sos, $50, 253 81.
| From the first Of March, 1869, when the pres
ent Administration assumed the management
of the finances of the country, to the close OF
the year 1872, period of three years and two
months, the national debt has been reduced
1891, 80 1895 GO; making an annual saving in
the payment of interest of S24, 1885, 0Gs. In.
der these circumstances, the proposition seems
to be plain that Government in debt, thai
places its stocks at the lowest rate of interest
possible, and that has the constant option &c
pay and does pay, in addition to the interest
any part OF the principal that it has the means
to pay, pays its debt in the shortest and