Mr. McCulloch, Financial Secretary to the President, warmly denounces repudiation
or any "argument addressed to the fears of the bondholders," but wants to substitute for the present 6 per cent. debt a 5 per cent. one. He thinks he could borrow £100,000,000 a year at 5 per cent. if allowed to pay the interest in gold in Europe,—a sanguine calculation. He gives the following as the actual receipts and disbursements of the year ending June 30, 1868, and the estimate for 1868-69. We take he dollar at 4s., customs being received in gold, while debt is paid in it :—
RECEIPTS.
Up to June 30, 1868.
1868-69.
Customs £32,898,914 £34,934,512 Land 269,743 342,977 Inland Revenue...... 38,217,514 27,749,172 .Miscellaneous......... 9,747,433 5,253,101 Total £81,133,604 £68,279,762
EXPENSES.
Civil Service £12,002,201 £12,245,421 Indians and Pensions 5,576,614 6,071,729 Army 24,649,329 18,649,823 Navy 5,155,100 4,320,956 Interest 28,084,809 25,948,563
£75,468,053 £67,236,492 Mr. McCulloch hopes to reduce expenditure till he has a sur- plus of about £10,000,000 a year with which to pay off debt, but he admits the utter demoralization of the collecting department, which is said in America to reduce revenue millions a year.
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