Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-10-27
THE FINANCES.
An Important Letter from Pres.
fdent Johnson.
Where the Money Goes.
The Dangers that Menace the
Country.
Our Safety In the Election of
Seymour.
THE FINANCES.
Where the Money Goes.

4
our finances you expressed desire to be
furnished with some of the leading facts
then mentioned, touching the national
expenditures and public debt / now
comply with your request, regretting
however, that other and more pressing
matters have prevented me from more
closely illustrating the absolute necessity
for immediate reform in the financial
| operations of the government.
In l776 our national independence was
proclaimed, and after an exhaustive and
bloody struggle of seven years it was, in
1883, acknowledged by the parent gov,
eminent. In 1887 the Federal Constitu-
ton was framed, and in 1899 the govern
ment went into operation under its pro.
visions, burdened with debt of S75, 0O9.-
OOO, created during the war Of the revo-
luton. Immediately upon the organiza-
ton Of Congress measures were devised
for the payment Of the national obliga-
tiOns and the restoration of the public
credit, and when in 1912 war was de,
clared against Great Britain, the debt had
been reduced to S45,000,OO0. Then it
was largely increased by the three years
struggle that ensued between the two ma
tons, until in 1916 it had reached the
sum Of l27,000,000. Peace was again
established, and provision was made for
the liquidation of this indebtedness at
the earliest practicable period, in order
that 1t might not become permanent in>
eumbrance upon the people. Unde-
wise and economical legislation the en-.
tire amount was paid in period of TWEEN.
ty years. The extinguishment of the ma
tional debt filed the land with rejoicing,
and was one of the great events Of PRESS
dent Jackson's administration. Even
after its payment large fund remained
in the treasury, which was deposited
with the several States for safe keeping,
on condition that it should be returned
when required for the public wants.
In lS49, the year after an expensive
war with Mexico, we found ourselves in,
volved in q debt of $64,00O,O0O. This
was the amount owed by the government
in 1860, just prior to the outbreak of the
rebellion. In thespring oflS6l the war
of the rebellion commenced. Each year
of its continuance made an enormous adj
dition to the debt, so that when, in the
spring Of 1866, the nation successfully
emerged from the dreadful conflict the
obligations of the government reached
the vast amount Of S2,60O,000,0OO. They
had not, however, attained their highest
point; for when the army and navy bad
been paid, the volunteer forces dis.
banded and the navy largely reduced, it
was found, in February, 1866, that our
indebtedness exceeded S2,S00,000000.
Having thus referred to the indebted
ness of the government at various pc.
RODS of its existence, it may be well to
call attention to a brief statement of
facts connected with its expenditures.
From the 4th day of March, 1889, to the
Both day of June, 1861, tie entire pubs
lie expenditures were 81, 100000, al-
though covering a period of seventy-two
years. This amount seems small when
compared with the expenses of the gov
eminent during the recent war of four
years duration; for, frem the lst of
July, 1861, to the Both OF June, 1865,
they reached the enormous aggregate of
s., 0000O,0O0. An investigation into
the disbursements since the lst of July,
1865, further shows that, adding to the
expenditures of the last three years the
estimated cost of the administration OF
the government for the year ending Both
June, 1861, we obtain the sun of 81 ,600,-
100000 as the amount required for the
four years Immediately following the
cessation of hQstilities, ornearly as much
as was expended during the seventystwo
years that preceded the war. 1t will be
seen that from 1871 to 1861 our public
debt was at no time more than $l67 ,000,S
600, while subsequently four years of
civil war expanded it to $2,S00,000,000
1t will be perceived that, while prior to
1861, the largest annual disbursement
was not quite $4,000, 600 for the year
1853, the expenditures during the last
three years of peace have successfully
been $520,000,00O, s., 460,O and
S393,OO0,OOO, $372,OOO,O0O being the
amount which, it is estimated will be
necessary for the year ending the 30th
ofJune next In making this comparison
we should remember that during the long
interval between 1889 and 1861 the gov
eminent was frequently required to make
expenditures fan extraordinary charac'
ter; large sums were paid to Indians as
annuities, and the purchase of their
land expensive wars were waged against
powerful tribes Louisiana was acquired
from France, at cost of Sl5,OOO,OOO;
Florida, in consideration of S5,OO0,0O0,
was ceded to the United States by Spain;
California came part of our possessions
on payment to Mexico of $l5,0OO,0O0
while for 100000 our government Sc.
cured from Texas the Territory of New
Mexico. During these periods of our
history we were also engaged in war
with Great Britain and Mexico the first
was waged against one Of the most pow
erful nations of the world, the other
made additionally expensive by the prOs-
ecution of military operations in the ems
emys territory.
The startling facts thus cOncisely stated
suggested an inquiry as to the cause of
the expenditures and indebtedness of the
country during the civil war. The main.
tenance of the civil government was the
great purpose that animated our people,
and that economy which should always
characterize our financial operations was
overlooked in the great efforts of the ma
ton to preserve its existence. Many
abuses which had their origin in the war,
continued to exist long after it had been
brought to triumphant conclusion, and
the people having become accustomed to
lavish expenditure Of the public money
for an object so dear to them as the pres.
erVation of the integrity OF their free in.
situations, have patiently borne taxation
of the most oppressive character. Large
sums of money continue to be extOrted
from them, and squandered in useless and
extravagant expenditures Enormous
expenditures are demanded for purposes,
the accomplishment of which require a
large standing army, against the prOvi-
siOns of the Constitution, and the subiu>
cation of the Southern States to negro
domination. With a military establish
ment, costing, in time of peace not less
than Sl00O00,000 annually; a debt, the
interest on which draws from the treasu-
~ each year nearly $l500O0,O0O, making
a total of $2500O0,0O0 for those two
items of expenditures alone. Retrench,
ment has become an absolute necessity,
or bankruptcy must soon overtake US.
If, however, a wise economy is adopted,
taxes must soon be materially reduced,
not merely for the benefit Of few, but
in the interest of all. The revenue would
remain sufficient for the administration
of the government, and such reduction
of the public debt would, in a few years,
raliavn the neOnie from millionasof intar-