St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-03-01
THE PUBLIC DEBT.
An Interesting review Of the 90
legations of Uncle Sam.

An Interesting review Of the OD-
legations of Uncle Sam.
Youths Companion.
The amount of the public debt on the
first day of January of the present year
was a little more than Sl,052, 000,000.
This was the met debt. that is, the re-
mander after subtracting the amount
of cash on hand from the to'al debt.
The gross debt, including about
81. 600, 900 of interest, was Sl.6lO. 000,0OO,
hut 49,, OUO, 900 of it consisted Of certifi-
Gates of the deposit III the treasury OF
god, silver or greenbacks, and the gov
eminent had in its vaults all OF these
several kinds of money so deposited,
ready to redeem any or all of the certi-
ficates if they should be presented.
The treasury had also in its wants
ah0ut $l35. 100000 cash balance that did
not represent any particular debt. SO
that if it were to redeem all the ctrtifi-
Gates and apply the money on hand to
paving other obligations, it would have
left debt of only 81 ,052, 100000.
1t is well known that a large part OF
the debt--nearly S347, 600, 000-consistso OF
''greenbacks," on which no Interest is
paid. The debt which bears interest ls
about SS3O.O0O.000. This last-mentloned
sum is divided into four classes, accord
ing to the rate of interest which the
bonds of each class bears.
One hundred and twenty-one millions
draw AZ per cent interest; 50,GO0,O0O
are at per cent. Sl4,00,GO0 at per
cent, and S65. 100000 are bonds Issued to
the Pacific railroad companies, ana Dear
per cent interest.
NJ In,fn
debt as it stood OH Jan. l. 1890, was
very little less than S35.000,0OO. This IS
the sum which represents the burden"
of the debt-since it is that which has
to he paid bV taxation every year.
France pays every year for interest Oh
ITS dent Tue sum of S25S.0O0,000. Great
Britain Sl30,000,010, Austria and Hun
gary Sl26, 1000, 900, Italy Sl00,0O0,00o. Rus
STA uPaTl $220.000.000, and even Spain
pays $56, 100000.
ine puollc debt of the German en-
pire is small. but that of the states or
Germany is more considerable. Prussia
alone pays S44,000,000 Interest alone.
And Canada, with One-twelflh of the
population Of this country, pays more
than $l0,OO0.0j0 year.
The progress that has been made In
daying off the United States debt can
be seen most clearly il we make com
parison with period some years dis
tant. On the 1st of July, 1879, ten years
and six months ago, the net debt was
81. 027, O00,0OO. The principal of the
debt, 1t will be seen, has been almost
half paid off in ten years.
LII 1879 the debt which bore interest
exceeded 81, 900, 900, 900, and we discover
that much more than One-half OF II mas
been paid. Moreover, the rate of inter
est was then so much higher than 1t is
now that in the fiscal year 1S19-SO the
interest paid on the debt was but little
short of S96. ZOO, 900, or almost three
times as much as it will be this year.
At present the rate at which the dept
is eXtinguiShed is slower than 1t has
been in the past, for the reason THAT the
government is forced to buy its own OBJ
legations at a premium, because they
are not due. No bonds are redeemaole
until September. 1891, when the AZ per
cents. may be paid off.
The holders of these bonds do not
wish to be paid, and will part with the
bonds only at price above par. There
is a comparatively small amount OF this
class of bonds-0nly 12l,0OO, 0O0-and
when they have been bought Or paid 1t
will be necessary to begin buying at
premium the per cents, which cannot
be called in for payment until 1907.
The public debt long ago ceased to be
burden that could be felt by the peo-
pie. The tax upon tobacco alone is suf-
ticIent to meet the interest upon 1t.