The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1882-01-26

bond can be sold at par We read in
the Scriptures that the men who came
in at the eleventh hour still got their
pay, and il may be that even as late a
convert as the senator from Ohio may
get some credit for coming TO The sup
port of 3 per cent. bond as "A matter
pertinent To the financial interests OF
this country.
He puts this measure now on the cold
ground of business; il is going To save
the government some money, and there
fore he says il should commend itself Ia
the judgment of the senate and 10
the Judgment Of the country. | pro-
pose 20 show, as think / can conclu-
sisely, that his proposition will lose the
country money, and "a large amount of
IL, too; much larger than he says il
will save.
For the purpose of jusiifYing this
measure the senator from Ohio says that
we shall probably be able-his consery-
aiism does not warrant him in saying
anything stronger shall certainly be
able-but We shall probably be able TO
pay $50, 200, 900 q year during the next
four or five years, and that payment, and
that only, requires the passage of fnnd-
ing bill. have in my hand the report
of the present secretary of the treasury,
dllu IL HuOnS luht, tut
extensive payments we shall make this
year and the succeeding year for the ar
rears of pensions, the excess of revenue
over expenditures for the fiscal year
1888 is going to be $105, 600. In the
present fiscal year, 1882, no;withstand-
ing the gross revenues will be 800, 0O0.-
coo, and during the calendar year just
closed there has been paid from excess
of revenues $120, 000. 900.
The present secretary of the treas
ury estimates the revenues tor
the next fiscal year at the same
amount that they are for the present
fiscal year. Notwithstanding the fact
that the revenues for 1882 have so far in
creased over those of 1881 more than
$15, 10000, he estimates that for 1888
they will be the same as for 1892, or
$400, 100000 Certainly a most conserv-
will be as far exceeded by the results as
those which preceded II have been.
2 Notwithstanding the fact that during
the year 1888 we are to have 100000
600 as the estimate for pensions as
against about $50,0O0,OO0 for last year,
the secretary says we shall have sur
plus revenue of $105, 149, 20G57. In adj
dition to that he says in his report that
he is carrying on the books of the treas
ury more than $7,000,0 900 in the item of
fractional currency, of which he says
only $50, 900 was redeemed last veal, and
he asks US TO charge that off, and if We
charge that off, as we might properly do
on his recommendation, it would make
$112, 900 that we could apply TO the
payment of the debt in addition to the
saving of interest during that year,
Remember now that while we paid
= - n
have saved nearly $15, 000, 900 in interest
during the same time; and if we could
pay 1920 ZOO, 900 last year upon the same
rate of expenditure and upon the same
ratio Of increase in regard to the receipts
of the government, we can pay at least
1885,, 100000 this year. 1t is there
fore safe to say that we can
pay $100,000,OO0. And whatever
amount we get, whether large or small,
over and above the actual and necessary
expenses of the government, the people
have a right to expect it will be applied
as fast as received in the payment of the
public debt. 1t should not be left to ac-
cumulate and stimulate the greed Of the
lobby for large appropriations or for the
payment of claims of doubtful validity.
The only place for surplus revenues
now is in the discharge of the debt.
The people will demand the strict and
prompt application of every dollar avail
able for that purpose. If we get 81 Geo.
900 surplus next year, there is no room
To doubt we shall have as much each
succeeding year during the next five
years. The amount will undoubtedly
be much greater after the first year,
| have made computation of the
amount of money that the government
would pay in interest, the discharge of
what are known as the Window or 81
per cent. bonds outstanding, provided
we fund $500, 100000 under this bill,
and q similar computation provided we
do not fund. 1 will read the computa-
ton as have made 1t, and will state
that submitted this TO an accountant
in the treasury department, and he sends
me this note, returning the sheets TO me:
The computations are found to be correct
and the DEDUCTIONS logical from the sssumP-
in the question warranting the surrender of
any part Of the present option for even five
years. The new bond should be two or
three ten-year bonds or none.
That is the option of the government to
pay within two years and not longer
than ten years, The opinion l care
nothing about, but the endorsement of
the calculation is worth something. 1t
will re borne in mind that there are
outstanding of the 81 per cent. bonds
in round numbers five hundred and fifty
million dollars.
On the basis of funding 100000 600
under the Sherman bill and paying
nothing out of the present surplus in
the treasury, the first year, we
would pay interest on $500,
ca mn 0fA0 arA MA rynr1l1
interest, 81 100000. Double interest is
not a new thing unfortunately. In 1870
while the refunding operations were GO
ing on, while the debt was being large
" reduced, the government paid $780,
327 ,949 of interest, while the year before,
when the debt was greater, 1t only paid
$102, 500,874. refer to that only to
show that double interest is not new
thing and the double interest would
arise in this way: The secretary of the
treasury when he receives money by the
sale of bonds then, and then only, gives
notice that he will buy or redeem an
equivalent amount OF bonds.
For instance, under this bill he is not
to take over $25, O00,O 900 at one time.
Suppose he notifies the public or the
public knows in some other way that lie
has $2O0, 100000 bonds to sell, and the
public come in and deposit $25, 100000
money in the treasury for the purpose of
getting per cent. bonds, he gives them
the bonds 60 Instant, of course, on their
paying money. Then having got that
$25, OO0, 600 in the treasury the secretary
issues a notice of ninety days that he
will take up an equivalent amount of
81 per cent. bonds, and during those
ninety days the $25, 000, 900 of 3 per cent.
bonds and the $95 ,O00, 900 of 81 per cent
bonds each draw interest, and that
average, being three months interest
on the whole $500, 000, 600, would be a
million and half, and that is paid the
first year. Then we should have to pay
81, SOC, 900 interest on this transaction
the first year. We should pay average
interest besides during the year on $780,
100000 at 81 per cent, which would be
81, 100000. Thus the total interest on
$3.50, OOO, 900 more would make the pay
ment for the first year $18000,000.
The second year the interest on $780,
600 600 at 3 per cent. We should pay, and
the average interest on another $780,
0O0, 1000 at 80 per cent am suppos-
ing now that we are going to pay off
800, OOO, 600 year-and we should pay
the gross interest on $50 600,
and the total intercs: for the year
would be $13,OO0.OO0. In the
third year We should pay interest on
$500, O0O, COO at 3 per cent. as before; we
should pay an average interest on $780,
600 600 at 31$ per cent. and VIC should
pay gross interest on so, 900, 900, which
would make a total of $9,5O0,OO0. In
the fourth year We should pay interest
on $20O, OOO, 600 at 8 per cent, average
interest on $50, 100000 at 81 per cent,
which would be $437. 500, and the pay
ment for the year would be 81, 437, 500 |
The nth year we should pay interest on
the $500 600, 600 at 8 per cent because
these bonds do not mature until the eX-
piraiion of five years.
The sixth year we should commence |
to pay them of, and supposing our sur
plus revenues to be as before calculated, |
the first years payment would be $780, |
10000, with an average interest on that |
sum of 81 1904 and full interest on
the other 800, 900, 900, making total
interest payment of $4,500,O00. The
seventh year the last 800, 100000 would
be paid off with an average interest of /