The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-02-26

business men and borrowers.
ADVANTAGES TO THE GOVERNMENT IN lhf'
LIQUIDATION OR REMOVING THE BURDEN
OF THE PUBLIC DEBT.
The debt, exclusive OF the leSal- tch-
ders now in circulation, is, in rouhd mum
bers. 81 800 900, 900 and the coln-lhterest
500. 900 600 annually In the treatment
of this branch Of the subject, the lirS'
question to be determined Is the amount
of circulation necessary Tor the IlallS''c
zion of the business of the country. l
am aware that there is wide difference
Of opinion on this point, and that we
have no reliable data by which lhc
amount can be ascertained with ehtlre
accuracy. All will, however, agree that
il will require much larger amount
than under the old spccie-basi5 1alacy,
when the farmers and others Of the pro-
ducing classes, because OF the insecurity
Of its paper, preferred to deposit IN
some wildcat institution rather imam
keep it in their possession over mSht
Those parties, having entire confidence
In the Government money, would retain
n much larger amount OF IL III thell
possession to meet future obllGatiohS'
Again, with II full volume OF currency
and a fair and uniform rate or interest,"
all branches Of productive industry
would revive and continue prosperous,
and most Of the ordinary business trans
actions would be for cash. L therefore
think II safe to estimate that as much as
s22.75 per capita would remain perma-
nently in circulation. Our population Is
now. in round numbers, forty -four mill
ions, which, at $22.75 per cdpttd,.would
make the circulation Sl,0O0,OOO,OOO. Inc
legal tenders and fractional currency
now in circulation is four hundred ana
twenty millions. This, deducted from
the one thousand millions of currency
would leave five hundred and eighty
millions to be supplied by an additional
issue of legal tenders after the bank
currency shall be retired from clrcula-
ton. TO keep the volume or the cur
rencv uniform would require it to be in
creased in like ratio with the increase
Of the population, wealth, and business
of the country, which have estimated
IT per cent per annum'.
Now. if the five hundred and eighty
millions and the increase in the currency
for the first year, amounting to S3O,OOo,-
600, (total, 56lD,0OD,OJ0,) be applied 10 thc
payment Of the interest bearing debt OF
the Government, us the same snail pc
come due and redecmable, at the pleas
ure of the Government, it will, with the
premium on coin at l3per cent, cine pres
ent rate take up five hundred ana forty
millions, nearly, Of the per cent. bonds
This, deducted from the total debt ST.
500, 900 OO will leave, to bear interest
the second year, II ,2GO,oO0,OOO, the rate
of interest on which will average PEI
cent per annum, or S63,OOOOOO Tor the
second year. The amount Of coin re-
CURED to pay the interest on IN" +"
,,oi,,in,, ,.artion Of tie debt Will be SO
small. that / think it safe to assume that
the premium would not average over II
per cent. Then, If we continue to raise
by taxation the Sl00,OOOOOO now required
TO pay the interest on the debt and add
TO it the increase in the currency for the
second year, amounting to S3O,9OO,oOO
(total $4,000, OOO) and invest the bal
ance after paying the annual interest on
the debt in bonds at 10 per cent. pre-
MUM, it will take up $6l, 727,OOO Of the
debt, leaving to bear interest for the
third year Sll9s, 900, the interest ON
which will be Sj9,9lI,O 900.
The increase in the currency for the
third year would be S3l ,2S7 ,OOO add
O.OOO,O0O raised by taXation-totaI
sl3l. s27,0 OO deduct S59,7li,OO0, interest
on the debt for the third year, and it will
leave $72,9l3.O00 to apply ON the payment
Of the principal Of the debt, which, with
coin at 10 per cent. premium, will take
up SG6,2iS,OOO of the principal of tht
debt, leaving to bear interest the fourth
wear Sl,l3l, $4,000 As the system would
by this time be fairly establi he'd, ano
the business Of the country accom-
modated to it, think it safe to assume
that the currency would be at par. Tn,
interest on the debt for the fourth yea
would be $j6,699, 45O-total, principal anc
interest Of the debt at the end or Tho
fourth year, $l,1ss,5sS, 45O. Increase IL
the currency for the fourth year, $780,
72S.slO add the S1OO,OOO,OO0 raised 10y
taxation-total, 1882, 72s, $40; this, deduct
ed from the amount OF the principa
and interest of the debt, will leave K
bear interest for the fifth year $l,O55, sO5,
64s. Then IL we continue to raise 10y
taxtion the amount now required to pay
the interest on the public debt, say
slOO,oOO,OOO annually, and add to it tn,
annual increase OF the currency, and
invest the balance after paying the an.