756 



KEFUNDING THE NATIONAL DEBT. 



in the Treasury January 1, 1825, at $9,792,716.- 

 41. He said : " Under existing laws there is 

 no probability that any portion of the balance 

 remaining in the Treasury on the 1st of Janu- 

 ary, 1824, or of the surplus which may accrue 

 during that year, can be applied to the dis- 

 charge of the public debt until the 1st of Jan- 

 uary, 1825 ; yet it is not deemed conducive to 

 the general prosperity of the nation that so 

 large an amount should be drawn from the 

 hands of individuals and suffered to lie inactive 

 in the vaults of the banks. On the other hand, 

 the high rate of interest of the great amount of 

 debt which becomes redeemable on the 1st of 

 January, 1825, renders it inexpedient for the 

 Government to apply to other objects any por- 

 tions of the means which it may possess of 

 making so advantageous a reimbursement. It 

 is believed, however, that every inconvenience 

 may be obviated if authority be given for the 

 purchase of the seven per cent, stock, amount- 

 ing to $8,610,000, during the year 1824, at such 

 rates as may be consistent with the public in- 

 terest. As it is now certain that the Govern- 

 ment will possess ample means to redeem that 

 stock on the 1st of January, 1825, it is pre- 

 sumed that the holders will be willing to dis- 

 pose of it during the interval at a fair price ; 

 and as a gradual conversion of it into money, 

 at such times and in auch portions as would be 

 most favorable to its reinvestment, would be 

 most advantageous to the moneyed transac- 

 tions of the community, it is presumed that it 

 would be most acceptable to the holders." He 

 therefore recommended that the Commission- 

 ers of the Sinking Fund should be authorized 

 to purchase the seven per cent, stock during 

 the ensuing year at the following rates above 

 the principal of the sum purchased : 1. For 

 all stock purchased before the 1st of April 

 following, at a rate not exceeding $1.25 on 

 every $100, in addition to the interest due on 

 such stock on that day. 2. For all stock pur- 

 chased between the first of April and the last 

 of July, at a rate not exceeding 75 cents on 

 every $100, in addition to the interest due on 

 the last-mentioned day. He stated that of 

 the $10,331,000 of six per cent, stock redeem- 

 able in 1825, about $5,000,000 would probably 

 be redeemed in that year, and there would re- 

 main unredeemed, after the application of all 

 the means at the disposal of the Commissioners 

 of the Sinking Fund, about $5,331,000. This 

 sum he thought might be readily exchanged for 

 five per cent, stock redeemable in 1833, and he 

 recommended that provision should be made 

 by law for such an exchange of so much of 

 the six per cent, stock as should not be re- 

 deemed during the year 1825. 



An act to authorize the exchange of certain 

 stocks was approved May 26, 1824. It au- 

 thorized the President to borrow on the credit 

 of the United States, on or before April 1, 

 1825, a sum not exceeding five millions of dol- 

 lars at a rate of interest not exceeding 4 per 

 cent., and reimbursable at the pleasure of the 



Government at any time after December 81, 

 1831 ; the money borrowed to be applied, to- 

 gether with the money in the Treasury, to 

 pay off and discharge such part of the six per 

 cent, stock of the year 1812 as was redeem- 

 able after January 1, 1825. The Bank of the 

 United States was to be allowed to lend the 

 money or any part thereof, and the Secretary 

 of the Treasury was authorized to raise the 

 money by selling certificates of stock, not un- 

 der par. Section 3 proposed a subscription to 

 the amount of fifteen millions of dollars in the 

 six per cent, stock of the year 1813, for which 

 purpose books were to be opened at the Trea- 

 sury and the several loan offices respectively, 

 the subscription to be effected by a transfer to 

 the United States of the credits standing to 

 the subscribers on the books, and by a surren- 

 der of the certificates of stock subscribed. For 

 the whole or any part of the sum so subscribed 

 and transferred, certificates of stock were to 

 be issued bearing an interest of 4 per cent., 

 and reimbursable at the pleasure of the United 

 States, one half at any time after December 

 31, 1832, and the remainder at any time after 

 December 31, 1833. The same funds already 

 pledged by law for the payment of the inter- 

 est and the reimbursement of the principal of 

 the six per cent, stocks of 1812 and 1813 was 

 to remain pledged for the payment of the prin- 

 cipal and interest of the stocks to be created 

 under this act ; and it was made the duty of 

 the Commissioners of the Sinking Fund to 

 cause to be applied annually such sums as 

 might be necessary to discharge the interest. 

 Nothing contained in the act was to be con- 

 strued to impair the rights of such creditors of 

 the United States as did not choose to sub- 

 scribe to the loans. Under this act $5,000,000 

 were borrowed at par, and under section 3 of 

 the act the sum of $4,454,727.94 was sub- 

 scribed in six per cent, stock, and exchanged 

 for stock bearing an interest of 4 per cent. 



Another attempt at refunding was made in 

 1825. 



Upon the convening of Congress in Decem- 

 ber, 1825, the amount of the public debt was 

 stated to be $88,545,003.38, redeemable as fol- 

 lows : 



In 1825. of six per cents $7,654.570 98 



In 1826. of six per cents of 1813 19,002,856 62 



In 1827, of six per cents of 1814. 18.001,437 68 



In 1828, of six per cents 9,490,09910 



In 1881, of five per cents 18,901 59 



In 1 832, of four and a half per cents 6,000,000 00 



In 1632, of five per cents 1,018,000 72 



In 1833, of four and a half per cents 6,654,153 72 



In 1888, of five per cents 18,901 59 



In 1884, of four and a half per cents 1,654,158 78 



In 1835, of five per cents 4,735,296 80 



At pleasure, five per cents 7,0(10,000 00 



At pleasure, three per cents 13,296,281 45 



By this statement it appears that, in the 

 years 1829 and 1830, no part of the public 

 debt was reimbursable excepting $7,000,000 

 five per cents and the three per cents ; but, 

 as these bore a less interest than that portion 

 of the six per cents of 1813 which was re- 

 deemable on the 1st of January, 1826, and 



