This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1887 edition. Excerpt: ...We were also led to approve the principle underlying the law for the resumption of specie payments, by which the United States came back to a sound monetary basis. CHAPTER IV. PEACE MANAGEMENT OF A PUBLIC DEBT. Theee can be no controversy respecting the pxirpose that should control the management of a public debt in time of peace. The payments entailed are a continuous drain upon the productive resources of the people, and it consequently becomes the duty of the financier to lighten by every honest means the burdens thus imposed. Under the guidance of such a purpose, we are led to recognize three ideas which may properly direct the peace policy of any government. 1. The evils of a debt may be mitigated if public obligations are made to perform some useful service. 2. The burden of a debt may be lightened by reducing the rate of interest paid. 3. The burden of a debt may be extinguished by repayment of the capital borrowed. Three distinct problems are thus introduced; the first pertains to the profitable use of the debt, the second to the conversion of the debt, and the third to the payment of the debt. The last of these is of sufficient importance to claim for itself a separate chapter, the others will be taken into immediate consideration. Profitable Use of Public Debts. A public debt comes to be of general convenience when of such form and character as to serve the purpose of investments, or as the basis of contracts. It should then be the first object of the financier to so, fashion the public contracts under which a debt is held as to meet the demands of commercial transactions. It does not seem necessary to enumerate and classify the various investors in public bonds whose needs should be consulted. Such a classification would...