The Richmond Palladium

The greatest war of modern history has ended in triumph. The country has demonstrated the vastness of its power. We knew it was great; now all the world knows it. Our neighbor across the water, who said our very greatness was our weakness—that we should never hold together—that we must fall to pieces, and very small pieces at that—now take off their hats and beg to assure us of their "most distinguished consideration." Verily! a young nation that can raise two millions of fighting men and two thousand millions of money, just for the asking, is worthy of being "considered." They told us we could not carry on the war six months without begging for loans in European markets. We did carry on such a war for four years, and never asked for a dollar; and they now wish to buy our bonds at an advance of fifty per cent. over last year's prices. Government stocks are quoted as brisk and in demand, and well they may be, for the time will soon come when no more will be offered. The national expenses will soon be down to a peace footing, and, instead of a Treasury budget of nine hundred millions, Secretary McCulloch will ask us for about a third of that sum. And how much easier it will be to raise this in peace than in war! The millions of soldiers who have so long made it a business to destroy life and property will return to pursuits of industry, and the now ravaged fields will whiten with new harvests. Instead of reading every morning that so many miles of railroad have been destroyed, it will be that "so many new avenues to material wealth have been opened." The South itself will be compelled to bear its share of the burden it imposed on the country, and its cotton—so much greater than gold, and still so much less than king—will have no attribute of royalty but what it pays into the revenue. A tax on Southern cotton will be quite as easily collected as on Northern petroleum, or manufactures, and besides the article must be had—the world wants it.

It would take but a fraction of our property to pay our national debt now; but if we do not pay a dollar of the principal in ten years, that fraction will be reduced one-half—by the development of the national resources. We shall doubtless wind up the war and square all accounts with a national debt of less than three thousand millions on about 18 per cent. of the present national wealth; but, according to its rate of increase (127 per cent.) from 1850 to 1860—in 1875 this debt will be less than nine per cent. But our ability to pay the national debt needs no demonstration: but as some of us have looked upon the dark side we may as well have a glance at the sunshine.

The national loans will soon be out of the market,—but for a short time the Government will need money to pay off the army and settle up the expenses of the war. Only about two hundred millions more of the second series of the 7-30 Loan remain to be taken, and when it is finally withdrawn, there is no doubt that it will rise to a handsome premium, and at the rate it is now going, some time within the next sixty days will see the last of this series. Mr. Jay Cooke, the subscription agent, announced in February "that the first two hundred millions of 7-30's will probably be taken in at par from three to four months"—but they were taken in less than two. So that parties who desire to invest at par in the U. S. Loan, bearing seven and three-tenths annual interest, and in three years convertible into a 5.20 six per cent. gold interest bond should make their preparations accordingly. Many of the best financial authorities believe that the Government will be able to fund such portions of its debt, as it may not be ready to pay as it falls due, at 4 per cent.