News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1891-03-26

| III VIII De ODSeFf6u UlldU ULlo IldAl-
mum surplus on March 1 was in 1888,
and that nearly thirty per cent. of it
was deposited in national banks
where it drew no interest, although
the government was paying interest
at the rate of four per cent. and four
and one half per cent. on bonds for
the purchase of which the surplus
was applicable. 1t is important to
show, therefore, to what extent the
interest-besring debt was reduced in
the six years mentioned.
In the first two years, 1SS5-1SS7,
no questions could arise in respect
to the policy of buying bonds at a
premium, at least, until after all the
three per cents. had been retired, for
they were subject to call; and yet on
March /, 1887, there were nearly
| $50, 100000 of those bonds unre-
deemed, although the surplus reve-
nue. on that date amounted to near
ly $93.0OO,000. In other words,
500, 100000 lay idle in the treasury
which might have been applied to
the redemption of bonds bearing in
terest at the rate of three per cent,
amounting to 81 100000 year. In
the two years the debt had been re-
duced by the sum of S141 ,53S, 300,
of which $91, 793, 550was on account
of the sinking fund, and only $40
742,750 by purchases from the sur
plus revenue.
In the next biennial period, 1887
1889, being the last half of the Cleve-
land administration, the principal
of the Understanding debt was re-
duced by the sum of $196, 53S, $50.
OF this total, $50, 753, 200 consisted
of three per cents. redeemed at par.
The total reduction of principal on
account of the sinking fund was $S2,-
TIC, $50, and the amount of bonds
purchased with the surplus revenue
was $113,762, 900. For the four per
cents. bought with surplus revenue
the average premium paid had ex-
ceeded 23h per cent, and the annual
saving of interest on all bonds thus
purchased was $4,491 ,064. But on
March 4, 1889, the surplus amount
ell to $13O, ,40S, of which $43,-
1874, S0S was deposited in national
banks which paid no interest, al
though they exacted interest from in
dividuals to whom the money was
loaned.
+ In the next and last biennial peri
cd, 1SS9-1S91, being the first two
years of the present administration,
the principal of the public debt was
reduced by the sum of $22S, 614, $50
reduction effected wholly by the pur-
chase of four and four and one-half
per cent. bonds. The total reduc-
ton of principal on sinking fund was
$50, 1926, 45O, and the amount of
loans purchased with surplus revenue
was $144, 7S9, 400. For the ST.
7S6,350 of our four per cents pur-
chased with surplus revenue the
average premium paid was a little |
more than % 40 per cent, or
about three and one-tenth per cent. |
less than the premium paid in the
preceding biennial period. The an
nual saving of interest on all the
bonds purchased with surplus reve-
nue. in this last two years is Sc, 1885,
sol, or $1.635, 527 more than the
saving of interest on the
bonds thus purchased in the last two
years of the Cleveland administra-
ton. The amount on deposit in ma
tional banks on March l, 1891, was
$24, 106,793, against $43, 1894, sos
on March /, 1889. The aggregate
amount of money applied to the re-
duction of the public debt in the two
years ended March I, 1891, was
1866. 726,O76. being about sos, OOO,-
600 greater than the aggregate
SO applied in the two years
ended March l, 1899, and 1924
1S9,776 greater than the amount
thus applied in the first two years of
the Cleveland administration