The Portland daily press., 1881-05-26
THURSDAY MORNING, NAY ss,
Our National Credit.

Ssrhe highest point which orr national debt
at any time reached was on the LIST day of
Septem her, 1865, when it Stood less cash in
the Treasury, at S2,757 ,6So,571. On the LIST day
OF the present month, the debt, less cash in
the Treasury, was 81 1854 012, $685. which is
Let reduction, as shown by the Treasurer's
statement, of nearly 5000, 100000 in less than
sixteen years. The absolute reduction is, how
ever, considerably greater through the pay
nenis of war claims directly from the Treasu-
ry.
The Hon. Hugh McCuloch, ex-Secretasy of
the Treasury, says the total reduction of the
priuoipal of the debt sin % the war is a little
less than ono billion dollars. This is in addi-
tioa to the immense sums which. have been
paid ia interest pensions ard Oh other charges
growing out Of the war Mr.. McCulloch points
ont Ia the June number Of the North A,neri-
can Review that ia the payment of temporary
obligations and in the liquidation Of claims
the United States began the reduction OF its
debt on a large scale Immediately after the
close Of most destructive war, fact never
presented by any other nation. This policy of
constantly reducing the debt has been steadily
pursued ever since, and will doubtless be con-
tinued until our national debt is wiped out of
existence.
the credit of tho Government to-day, with
its inur-per-ceni. bonds at 1T and three and
half per cents. Thankfully accepted as an alter
native 10 absolute payment, is sharply con-
trasicd with the time when, in December, 1860,
the Secretary of the Treasury sought to bor
ron 100000 and WAS hesitatingy offered
less than one half that amount at rates of in
tereSt running from twelve to thirty six per
cent. Certainly no individual credit, and in
Nh. McCulloch'S opinion, Nc national credit
stands as high as that of the United States to-
day. The policy of steadily reducing the debt
has enabled the Government gradually to re-
duee its interest rate from six per cent, to five,
to foar and a-half, and Mr.. McCulloch thinks
that a further reduction to three per cent can
probably be made. This point has been zeal
ousiy disputed by most fnancers, and it will
strengthen the position of those who advocate
the issue Of such low-raie bond TO find them
sris'S supported by the conservative iudg-
in' Hi, large experience. and acknowledged
financial authority OF MIR. McCul!pch.
il IS argeod that as tho British three per
celi. perpetual annutios ara usually below
par, and French three per cents. sell at dis
count, it would be impossible to float three
percent. loan here at par. Mr.. McCulloch
SAYS Il must be borne in mind that the United
States is much mere populous and prosperous
than either Great Britain or France, and in
uHdeye!oped but RAPIDLY developing resources
incomparatly their superior, while our debt is
itSS man Ouc-Ddii u SiktSE VI dtN lc zap
idly diminishing, while theirs is stationary if
uo Increasing. Moreover, there is demand
for Government securities in all countries,
which nothing else can so well supply, and
this demand must steadily increase, which
with The dininution of the debt, the available
Government securities viii as steadily dimin-
ish. On this account he thinks three-per-
cent. bond with twenty years to run, would
never be at discount except in periods of
great business depression. which, with wise
aascl atso x-.il 1v a
therefore thinks that Congress will act wisely
it, at the next session, it authorizes an issue of
twenty year three-per-cent bonds to an amount
sufficient to redeem and pay all bonds bearing
higher rate of interest as they become re-
deemable or payable and relieve from taxa
ton the na:ional-bank circulation, to secure
which the three per cent bonds may be depos-
tied in the Treasury"