The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1879-10-10
THE REFUNDED DEBT.
From the Youth's Companionc

4 great deal has been said about the change in
the form of the public debt, by the process Of re-
fund ing, but the most important fact, the grand
result, attracts but little attention.
Let us look ut this result for few moments.
In doing this three periods may be selected, and
we can compare the public debt it stood at each
of them. The first period was the close OF the
secession war. At the end of October, 1865, when
the war accounts had been mostly settled up, and
before any great reduction had been made in the
debt, the United:States owed two thousand eight
hundred and eight million dollars. OF this amount
eight hundred and thirty million bore seven and
three-tenths per cent, interest; nine hundred and
forty -four millions, six per cent. interest; two
hundred nd fifty millions, five per cent, one hun
dred and seventy-three millions were drawing six
per cent, compound interest; and the rest was
temporary loan, certificates ofindebtedness, legal
tender notes and fractional currency.
If the debt had remained unchanged during the
whole year, the Government would have had to
pay more than one hundred and forty million dol
lars in interest. As 1t was, the interest really
paid. in ls65-6s .slsj. O6 al 90; and Of the
interest paid in that year sixty mine millions were
paid in gold, and the rest in paper money.
The average price of gold during the year was
value of the interest paid in greenbacks was near
forry-fve million seven hundred thousand dol
llrs; making, with tine sixty-nine million just
mentioned, about one hundred and fifteen mil
lion, rs the gold value Of the whole interest
charge.
This is our starting point, debt of two thou
sand eight hundred millions, and interest amount
ing To one hundred and fifteen millions.
The next point is the month Of May, 1871. The
refundng acts of 1870 AMI ISL had been passed,
and sulScript ions to the five per cent. loan had
begun; hut none had been issuc'i In the years
between IS,ij and 1870, the seven-thrty notes had
been funded into six per cent. bonds.
At the end Of May, ISL, 1.-THE debt, not counting
interest, was two thousand three hundred and
serenty-three millions. Ofthis amount one thou
sand six hundred and eighty-seven and half
millions were at six per cent, two hundred and
fourteen and half millions ut five per cent, fy
millions ut three Per cent, and less than one
million at four per cent, the rest was as BEFORE
legal tender notes, fractional currency. etc.
The annual interest upon this sum was about
one hundred and thirteen and y half millions, all
but million and q half being in coin. But As
the debt hal been reduced during the year, the
amount actually paid out was above one hundred
AMI twenty-five millions.
The rcfunding process has occupied about eight
years. At the end Of that period, on the lst Of
August, 1873 we find the public debt-excluding
interest, and taking no account of the money ON
hand, rs has been done in both the former state
ments-amounting to two thousand two hundred
and ninety six and half million dollars. OF this
amount. less than two hundred and eighty -four
million bears interest us high rs six per cent
five hundred and eight and q half million are At
five per cent. two hundred and fifty millions, at
four and half per cent. seven hundred and
forty millions, ct four per cent. fourteen |
millions at three per cent; seventy nine millions
had ceased to draw interest, and by this time !
have, for the most part, been paid; and the rest
as before. draws no interest.
The annual interest will henceforwxrd not ex- |
ceen eighty three and three-quarters millions, all
payable in coin, if the bondhOlders desire it or
in paper, if they prefer that. So that between |
1865 and 1871, while the actual interest paid di-
minished only about eight millions. in the last |
eight years it has been cut down more than forty
Dne millions.
" by the amount Of its interest. Our own debt,
therefore, has been made very much easier to
bear. The reduction from one hundred and
twenty-five millions in gYld, in ISL, to eighty
four millions, in 1880, is q relief amounting to
hirty-fve per cent, or more than one third Of
he burden.
II, as now seems certain, business is again to
become active, the taxation necessary to pay the
interest upon the public debt will scarcely be felt
jy the industries of the country.