New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-09-23

committee was raised, upon motion OF a Dem
ocratic Senator, and headed by him, to inves-
| tigate the records of the Treasury, and experts
chosen by that Democratic Senator have spent
months in examining all the books and vouch-
ers of that department since the war. But
they find not an error of single cent In the
| whole account, and the results. as to the
public debt, recently published by the de-
partment, must therefore be accepted without
dispute by both parties.
Increase of population has done something
to tighten the burden of the debt and that
increase, during thirteen years, has been about
12,700,000. The remaining changes have
been due, first to payments of debt, and
second, to rapid Improvement of the public
credit and consequent ability to substitute
bonds bearing low interest for bonds bearing
high interest. These changes have been eff
fected by wise legislation and administration.
1t will not do to say that the mere natural
resources of the country enable it to borrow
at a low rate of interest. The last Democratic
Administration, at the close of long period
of unexampled prosperity in this country and
when the Nation had no debt was Obl!%edto Dor
row money at II per cent. The present Re
publican Administration, Notwithstanding an
unprecedented depression of industry which
has lasted for five years, and Notwithstanding
the existence of great National debt caused
by Democratic rebellion, can borrow at
per cent. Legislation has secured adequate
revenue; it has gwen confidence to creditors;
it has rapidly diminished their claims; aud 1t
has sturdily resisted the violent and revOlu-
tionary changes by which demagogues have
constantly threatened to rob creditors and
PROSTATE all industry.
Since August 81, 1865, when the debt was
largest, bonded debt amounting to 1886, 1884,
645 has been paid, and interest thereon wholly
stopped. The interest thus saved by actual
payment of debt originally bearing 1910 per
cent has been not far from $131, 100000
already, and the difference in annual interest
this year alone. due to this reduction of
bonded debt, is $40, S36, 009-nearly 80 cents
for every man woman and child III the
country.
AT the same time. by means of other meas
ures which are also savagely assailed by hum
CRY politicians out of office, the public credit
has been so advanced and strengthened that,
IN place of 1910 per cent interest, which the
Government was obliged to pay at the close
of the war on 1880, 100000 of debt, and 6
per cent which it was obliged to pay on
81, PSI, 1876, 439 of debt. bonds at per cent,
4l2 per cent and per cent have been issued
and sold, and the proceeds applied to the ex-
tinguishment of debt bearing higher interest.
By this process saving of $13, 4s7,216 in
the yearly interest due has already been
effected Had Democratic demagogues or
~ l. 90 no oh 20 hpno ba
credit of the Government, the choice would
have been between outright reputation, which
would have been more costly than any rate OF
interest ever paid, and continuance of pay
ment at the rate of 1910 per cent, or per
cent for an indefinite period upon the whole
war debt. Partly by paying debt, and
partly by defending and advancing the
public credit, the Republican party has cut
down the yearly interest charge from
$3.50, 977,69S to S94, 6544 72, thus saving
taxpayers $56,323,226 every year And this
improvement is gong forward every day, by
sales of four per cent bonds with which 10
pay off SIX per cent bonds, at the rate of about
100000 daily, that the interest on the
public debt is thus being reduced at the rate
of $4,000 every day. Is it not wise to "let
"wer aloneY Would it pay to set repudia-
TORS to tinker at the National fnanccsi
L" But the currency this fTightful contrac-
" ton of currency The currency supplied
bv the United States consists wholly Of debt
bearing no interest, and the amount of such
debt, August 1, 1865, was $4G1, 6l6,3l2, and
it was S455, 875.6S2 on July /, 1878. Prac
tIcally, there has been no reduction of any
importance in the currency supplied by the
Government. We believe the management
of the Republican party greatly In
error in this respect. Had that party
paid off less of the bonded debt, and
larger part of the debt bearing no
interest, its conduct would have been still
more wise. But the official records prove
that the only part of the public debt which the
party has thus far left practically untouched
is that part which is used as currency. More
over, the change which is now proposed is
not in any sense contraction of the cur
rency but n substitution Of coin in ciTcua-
ton for such part of the paper in circulation
as the people may wish to present for re-
demption. Thereby, many millions of coin,
now locked up by banks and held as merchan-
disc, would be set free for use as currency.
The only expansion of circulation that can
come without harm and without dishonor is
that which the resumption of specie payments
will bring.
THE INCONSISTENCIES"