New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-07-26
UsURIOUs RATES OF INTEREST.

The rate of interest actually paid on tho notes
issued under this has been the subject OF fre-
auent dispute and the facts as given in an official
form, are as follows:
Under the Act OF December 17f1s6O Q2 Statutes,
101 Treasury notes were Issued redeenabe at the ex
praon of year from date bearing interest as i3l-
lows $4,000 at per cent $4,000 al per cent 81
So. per cent S85 900 at per cent $4,000 at 9 per
cent $4,000 els per cent S77 900 at 9a per cent
62S 900 at iOI per cent $l367 900 at 10 per cent.
ss II SSp HSGona s odsr we're
received. ranging from 10 to So per cent whch were
refused
In January, 1861, the Secretary, in order to re-
ieve the Treasury from its embaTassments was
forced to ask Congress for authority to obtain
loan without restriction to the price of the
bonds. This money was needed not to meet loans
falling due or to pay the expenses of war. but
WAS asked for in time of profound peace. to meet
fhe current expenses of the Government Never
before. since the year 1889, when a small sum was
borrowed to pay salaries, etc. under the new Gov
ernment had loan been asked to meet ordinary
expenditures So low had the credit of the Govern
ment fallen at that time that Secretary Dix sug-
pestcd TO Congress, as financial resource,
that the several States be asked, as
seonritv for the repayment of any money the Gov
ernment might find 1t necessary to borrow. to
pledge the deposits received by them from the
Government under the act for the distribution OF
the surplus revenues in 1886, the Secretary beleV-
ing that loan contracted on such basis OF secu-
rity superaddng the plighted faith OF the United
States that of the individual States coud hafuly
fail to be acceptable to capitalists
bill was introduced February 2, 1861, author
izing loan of $25 OOO OO0 to bear interest not to
sxceed per cent, and to be redeemed in not
less than ten or more than twenty years The bill
became a law February 8, 1861, after earnest de-
hates IN which however, no opposition was mani
feeted TO the bill as "a whole, but SIMPLY to details,
both parties agreeing that loan was absolutely
necessary Bonds to the amount of $lS.4l3OOO
were sold under the authority of this act at an ag-
eregate discount of $2010,776 10. or AN average
rate of $50 O3 per 800. Secretary Cobb IN his
port before referred TO says:
The estimated balance that will be in the Treasury on
June 20 1861 is only $3,53019 81, and leaves No
margin for additional H. therefore tne
appropriations shoud exceed 1ae @ or S ,
should determine 10 provide within is perou @ l9n te
~avtent of any portion OF the public debt II win be-
CON e idea OF increasing public debt to meet the
0rdinary expenses Of the government sn1uiu no' oe
created npon the Treasury by the legislation oil the
present Congress. provision must DO MADE 10 meet
Them by such Increase of tarn dulles uo may NC io
Guired for that purpose.
HOW THE DEBT WAS INCREASED
bill for the repayment of outstanding Treasury
no,ee IN authorize a loan, and to regulate and fix
tbe duties on imports, introduced in the House
of REPRESENTATIVES March r. 1860 1t was sarcastic
ally said in debate the BILL that the idea Of not
increasing the public debt to meet current expenses
was very patriotic one, but the Administration
had practically illustrated tho sentiment by
steadily increasing the debt TO meet these ex-
penses during every year that it had been in power.
This was shown by the following table,
Public debt July 1872 S99 9s9 60
Public debt July l, 1o59.........-- oo'|os'os",oo
In addition to this Increase Of the public debt
there was rapid decrease in the amount of cash in
the Treasury during the years mentioned. III was
Furthermore charged that this had taken place un-
der the tariff that practically dscriminated against
our own people, compelling us, for every fourteen
or fifteen millions Of revenue collected
at home, to foot bill Of nun
dred milliOns abroad. The debate Oh
the bill took very wide range. including the SUD
ects of the tariff and of protection to American In
dustry. aud often branching off TO the state OF the
Union and the political troubles which Drought OH
the War Of the Rebelon but the bill failed To pass
botb Houses al that session. Ii was taken up at