New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-01-24
THE NATIONS DEBTS AND CREDIT.
..-. -, -, !. ~ ~. mn. 1n1RI- VI

THE NATIONS DEBTS AND CREDIT
lBY TELEGRAPH TO THE TRIBvNEl
W,eUINGToN Jan. 23.-Ouc OF the most lmpoi-
taui and interesting of the special reports OF the
consu, will be that on Public dcbts-National,
state and local" This volume will contain ms
tory of United States loans from the BEGINNING
prc9ared by Captain Il. A. Baylcy, Of the treasury
Department.
The total indebtedness Of the United States Wheh
tho Constitution was adopted. including lntcIeS' 10
December 81. 1880, was $50, 7NN,722 o3 III a'd'-
t;ou 10 which the several states owed ABOUT
g. 600 OO0 After describing the provisions maize
w., p,o uovmcut of this indebtedness, Captain
p,,le,. saws that when Hamilton assumed the once
~ Scl,rtary of the Treasury he found himself en-
tirv without funds to meet the ordinary expenses
nf tbc Goverume nj. except by borrowing lie ""o
,ooj to make ARRANGEMENTS with tn Bank oi
NrS-York and the Bank Of North America ioT ich-
,,rorv loans and il was from the moneys received
from these banks he paid the first lnS'a!ineut OF
liar, due President Washington, Senators, Repre-
.cntotIvcs and officers of Congress. During the
first session under the Constitution the first BANK ol
the United States was authorized by the act oi
February. 1891. with capital stock ol
go OGO 600 OF which the Government subscribed
= 100000. which the Government Immediately
borrowed for ten years at per cent interest Inc
bank was SO well managed that the Government
realiz.d profit o. its shares of$3,773,5N0.
In 1875 the United States without a navy,
and nine vessels were bought at total cost OF
S7ll.7OO, which was paid III per cent Government
stock authorized 10 be issued for the purpose III
l7qS and 1900 the credit of the United states was
sl 40 low that on a loan of S5,OOOOO0 negotiated
in the former year. per cent interest was pai0' an"
il WIS thought bva Committee of Congress that
,1.. ol,.a be
could be procured, and with laudable eye to public
interest I'm 1900 an : per cen, fifteen year loan
was negotiated, on which p.omium Of about o@
per cent was realized. On account of the second
war with great Britain the public debt OF the
United states was increased SGe,7S3,l22, accord
ing 60 "a report made by Secretary Dallas to Con-
rIcss. \ per cent fifteen year loan, authorized Ill
March, 1915, was sold at % per cent topaz In
1916 the Government became stockhoder IN the
second Bank of the United States to the amount OF
$1,000, 600, upon which II eventually realized
profit of nearly - 600 coo. aside from the bonus
OF ~ 100000 which the bank paid for lis charter.
n ISL the credit of the United States had SO i'm
proved that a per cent loan was s1@ed at a
premium Of more than 5l2 per cent.
In 1886 the Government was practically out OF
d,bt and there was large surplus revenue. Con-
lIrS, authorized the deposit of all the surplus eX-
ccpt = OOO. 900 with Tie several states, and the
sum Of IS. ,GIf was thus deposited, and the
very next year Congress authorized the issue OF
$1,000, 600 in Treasury notes bearing per cent
interest. Before lNIb more uldh Ft''VV"''"V" "
per cent Treasury notes had been issued and in that
vcarthe war with MeXicp ran tha country sill
deeper in debt. The expenses incurred on account
# the war with Mexico were much greater than
.,;.o - estimated and +lo failure to lr \idc a.l-
- ... ,,.,i.i..,t -, ,,,..t i,.cro,..I dc.
H''"il"' IT, '1''"'N SUNNI '' " ~
mauos m1dcd new loan necessary, rs wen as an a'-
!itIonal issue of notes. which had BOW become
..l,l or ,itoir,,,, funds tbout S7O OOD 600 of
'N''"' w. ''7
i've and NiN per ccdt ""hdS were I''"'' ~ '"Ii5 o
tlo war and the premiums paid on redemption OF
.ti.L L..l I-ritod states Amounted 10 nearly
.o-a> ~ oon ,r, f,,o,,,.I o. rolt Nv.
9''UV"''''' ~, -. 49,, , ~
the Treasury, and Treasury notes 10 iIe amount oi
~ rs 500 were issued. In 1875, owing to Law
= ,,,ro,,ri,tions cvccediuo thr estimates by
-" "PI''P'''' ~, =. -
Slo.0ooOuo' ana 10 " ldilii'- "l '''"'' " vas
found necessary TO borrow S2OOJOOOO on i've pr
cant hands On which = pycI1ium og 81 Der cent was
lrailzed'
From that time on the Government mas uc'H Il
I,.rr,.,.r H. Bccq1nber 1850 authority was
g 1....,,. .,,,,,o. r.l,,,
tiu''t" l'l u i''" IS-~- ~ ii'"'"i' ''''N i''''"
le IN one year from dAle pul nov 70 cN'ced
SIO.ODOo0o at any One time, with interest al such
i,cd amer tiis oct Wa, %iG 500, Of