The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1875-06-02
OUR INDEBTEDNESS.

u IAOEb4 ELI Edo.
HOW TO LTQUZDATE THE SAME.
To the Editor Of the Morristown Gazette:
Isee my friend, Mr.. J. II. Crozier.
in answer to a communication of
mine in the GAZETTE of the 10Th
inst. says: 81 propose to make use
of exactly the same principles. and
nearly exactly the same words made
use of by Esquire Leeper, and pre-
sent an Improvement upon his plan.
but I at the same time assert that
the adoption of either plan would en-
tail serious loss upon the bond-hold-
ers.'
He then undertakes to adopt and
amend the principle laid down by
myself for the payment of the State
debt. by substituting fifty years in
the place Of thirty-four; and then
winds up by saying: But both
plans are radically defective, IF so
desired, I can show exactly where
loss accrues to the bond-holder in
both Esquire Leeper's plan and my
own, but any one with average math-
ematical mind can discover the de-
feet in half an honrs' study"
This is certainly a very evasive
manner of reasoning to come from
a gentleman presumed to be better
qualified to give a more satisfactory
answer, and would not be noticed if
] didn't believe my friend Crozier to
be honest in what he says. / will
first correct a typographical error in
my communication of the 18th inst,
where / am made to say the interest
on twenty-five millions of dollars is
one million three hundred and TWEEN
ty dollars per annum when it should
have been one million three hundred
and twenty thousand dollars per an
mum ; and then, for the benefit of my
friend. l will lay down a few propo.
sitions:
Ist. That one dollar of interest
paid before it is due. will draw as
much interest If loaned out, aud be
as great gain to the person owning
the same, as the loss would be on
one dollar of principal without inter
est for the same length of time.
2nd. When the sum of the inter
est is equal to the principal, and you
add them together. the product will
be made up of equal parts of each,
and the division of the same into any
number of parts will not change the
proportion.
Sd. Any sum equally made up of
principal and interest, and divided
into thirty-four equal parts. and one
of said parts being paid down,
and another one of said parts in
thirty-three years after the first, the
eum of the interest being paid in adj
vance being equal to that part of the
principal due thirty three years
hence, the profit in n case will bal
ance the discounts in the other and
leave the interest part Of the thirty
fourth instaIlment unaccounted for.
Substituting f~ifty-eight years for
the value Of each of the above parts,
andgo one of said parts being made TO
fall due each year, it is very easily
e that the principal in the parts
falling due inversely from thirty.four
years down to seventeen, will be
equally balanced by the interest part
of the first seventeen installments
from the date of maturity to its cor
responding inverse number, without
any possibility of loss and leave a
surplus Of twenty-nine dollars at
each payment on said corresponding
inverse number, amounting in all to
four hundred and ninety-three dol.
lars unaccounted for. Now count
the interest on the amount of prin-
cipal In each one of the first Ia parts
from the date Of execution to the
date of maturity. ADD it will amount
to $236,64 Then count the interest
in like AM for the anne years
and time onthe remaining parts, (the
remainder of the time having been
balanced.) and you will have 1886
"a more adj these two amounts
together, and subtract the sum from
the $493 90 above not accounted for,
and YOU wilt have the debt paid, and
Sl9s72 yet unaccounted for; add to
this last sum the increased value Of
the coupons over our present State
bonds, and you will over-balance any
loss by discount that might be claim
ed in balancing a part of the inter
est by undue interest.
L. L. LEEPER.