New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-12-08
sl.022,s58 50
Making the sum OF.

vii 20 476a53Zo
To winch add the reduction in The item of
Interest due and unpaid, and accrued IN oo, %, ~
teIest 10 uato -'ii'o1 =
Making the sum Of .................. slO22,s58 90
WILL therefore, be perceived that no difference eSsls
In these two accounts other than that which grows out
OF the manner Of their preparation
Frugality admin alton among the foremost ana
most important points of sound hnanciai poicy fah
full collection OF the and reduction OF eIpendi-
to the lowest point demanded by the necessities OF
government constitute the fret duty of those intrusted
with making and adminstcrin the law. The obligation
adhere strictly TO this duty has peculiar force whc
the public Indebtedness IS large and the industries OF Ie
country are suffering from financial depression Rigid
economy at such time must lead 10 two Important re-
suits; first, advancement OF the credit OF the Govern
meut throus hou the financial world, and hence ability
10 refund the debt at lower rate OF interest; second
and by no least in importance greater Willingness
on the part people to bear the burden OF Taxation
when they gee that their Government like themselves,
reducing expenditures to the lowest practicabepon and
applying the received from them to It's necessary
and legitimate purposes The general depression OF os
mess which followed the OF Imitation and extraVa-
gance through which have just passed, has made II
necessary that individuals associations, and corpora
lions should reduce their expenditures 10 the minnn
and having done the taxpayers have right 10 De
rnand that the Government shall do likewise While the
interest the public debt and all other natol ODg@
TONS nc promptly met, there are many points al
which 10 is believed that considerable reduction OF appo
priations can properly be made and tho Secretary III
yites critical examination Of all the estimates submitted
to Congress Increase OF public expenditures In time OF
eat prosperity and extravaganza ID accomplished by an
easy process but a corresponding reduction when the
reverse be brought about only by the closest
vigilance and determined resistance TO every ap-
peeal for appropriations required by the existing ne
cessues of government No appropriation OF money
should be made without reference to the probable amount
Of revenue within the year In excess OF exist
ing obligations and liabilities.
THE SINKING FUND.
The h section of the act of Feb - 1852, ses apart
as special fund all duties imported goods, and d.
reefs the application thereof;
First: To the payment in coin OF tho mterest on The
bonds and notes OF the United states.
Second To the purchase or pay ment OF one per centum
of the entire debt OF United States, u he made
Within each fiscal year after the first day Of July, 1862,
which Is To be set apart as sinking fund ana the inter
of which shall ia like manner be applied To the pur
chase or payment OF public debt the Secretary OF
the Treasury shall from Time to iime direct. ,,,
OF the United states.
Section OF the act of July H. 1870, directs that the
bonds heretofore purchased and then held in the
treasury In accordance with the provisions OF the act
aforesaid and all other bonds which had been purchased
by Secretary Of the Treasury with surplus funds in
the treasury and any bonds thereafter applied to slid
sinking fund.- with all others thereafter redeemed or paid
shall be recorded Cancelled and destroyed and that the
amount OF the bonds OF each class so Cancelled and de-
stroyed shall deducted, respectively from the amount
of each class Of the outstanding debt OF the United
States The lastnamed act also provides that IN add
ton to other amounts to be applied 10 the redemption or
payncnt OF the public debt amount equal TO the in
terest on all bonds belonging the aforesaid sinkng
fund shah DC applied the Secretary OF the Treasury
shall from time o time direct, 20 the payment OF the pup
lie debt as provided for in Section Of the act first
above named and appr0prates from the receipts for
duties on imports the amount so to be applied These
acts are regarded by the Secretary imposing upon him
the imperative duty 10 take care OF the sinking nd, as
therein directed, out of the coin received from duties on
imports This requirement j. secondary only to the pay
ment interest the public debt IL takes precedence
OF all other appropriations as by the very lers oi te
alter dcducting interest public debt and providing
for the sinking fund into the treasury The statute
imposes upon the secretary duy TO DO ptrio'Icu All
nuay the requirement being that the purchase or pay
for aud account Of the sinking iuhd shal be
During past fiscal year IL was not practicable 10
purchase the amount Of United states bonds reqdFed
Tor the fund the that such bonds could
be bought az par aud the Secretary was orbdden o
law 10 nav more But tue eleventh section of the Of
March 3, 1875, authorizes the Secretary for the
purpose OF obtaining bonds for the sinking Iund.
give notice that he viii redeem III com at par any
bonds OF the United States bearing Interest at the
rate six per ccntm of the sHd known as Ftyetwen-
shall cease at months from the date OF notification
The amount required FOR the sinking iund Ior the nstl
year ending June 80 1878, was s5l,O96,5l5 or this
amount 1896 800 six per cent Fyctwenty bonds were
purchased az rate O 500 s72 for each hundred dol
nrs IN bonds aud Ilth day OF March, 1873, call
wa mace for $4,000 900 ~ the class OF bonds.
This call mafured the III day OF June 1870 which
being the end of the fiscal year. o pant ot inc
bond. named In the notice not presented for re-
deInptiOn during that year or the amount 80 Called
only S24 O73 800 were presented for payment before the
3Otn day OF June. Therefore the amount when appears
upon the books Uf the treas ~ a. actually applied " the
sinking fund within the past fiscal year ~ 80 1000
For the current ls. year IL i estimated that r32ll
Oh must be- applied 10 the fund To meet TINS require
call was maze on the lst day Of September for
SsOOOoOO six per cent flyctweny bonds, ana on the
18Th day OF November further call Tor bonds
of the same class The 1alhnce necessary 10 eohplete
total amount for this year VIII ne called rom tle TO
time in such manner the least disturbance Of
the market and II hoped that the whole amount VIII be
presented Tor payment WITHIN the year.
REFUNDISG THE NATIONAL DEBT.
Since the eecretarys last report to Congress the
funding Of the national debt authorized by the acts Of
July a. 1870 aud January 90 1871 has been continued
The contract which WAS into July 49, 1874 and
which fully set forth and explained In the last annual
report was renewed January 30 1873 the contracting
parties being Meesrs. August Belmont & Co. OF New
York on behalf Of MessIs n. NJ. Rothsehd & Sons OF
London England; Messrs. Dgcxel, Morgan Co. OF New
York On behalf MessIs. j. S. Morgan Co. Of London,
England; and Messrs j. & W. Seligman & Co OF New
York OH behalf OF selgman Brothers, London, England
The conditions Of the contract slightly modified the
contracting parties being allowed onehaf OF one per
cent commission, and binding themselves 10 deiray all
expenses incurred transporting hye per cent bonds TO
IondOn aud xix per cent bonds United states coin
coupons and gold coin rom London 10 Wh,hhEtoh oo
sides the expenses Of preparing the new bonds
Under this agreement the contracting parues nave
subscribed for Sl22 $50, tho balance OF New
Elves then remaining unnegcuatedi anu tho oecrou!
now has the pleasure OF announcing 10 Congress that
the funding OF the 500 100000 Of cent bonds INTO
those bearing per cent interest has been accomplished
thereby saving annual interest TO the Governments III
The success which has attended the reundng OF $l7s.
64s 800 OF the National debt during the last ~ oh'Is