Wilmington journal., 1868-10-30
Letter from President Johnson.

Letter from President Jehns0n.
The National Expenditures and the Pub
lie Debt. s-ag-
WASHINGTON, D. c., October 25-The
President of the United States has address
ed the following letter to General Ewing,
Ececutiue Mansion, Washington, d. G.,
October "a, 1S68.-Dear Sir: In a recent
conversation upon the subject of the
finances, you expressed desire to be fur
nished with some of the leading facts then
mentioned, touching the national expendi-
lures and the public debt. now comply
with your request, regretting, however,
that other and more pressing matters have
prevented me from more clearly illustra-
ting the absolute necessity for immediate
reform in the financial operations of the
government. --
In 1776 our national Independence was
proclaimed, and after an exhaustive, bloody
struggle of seven years was, IN 1888, &C
knowledged by the parent government
In 1857 the federal constitution was franz
ed, and in 1889 the government went into
operation under its provisions, burdened
with debt of seventy-fve millions of dol
lars cleared during the war OF the revolu-
ton. Immediately upon the organization
of Congress, measures were devised for the
payment of the national obligations and
the restoration of the public credit, and
when in 1872, war was declared against
Great Britain, the debt had already been
reduced to forty five millions of dollars. 1t
was then largely increased by the three
years struggle that ensued between the two
nations until, in 1916, it had reached the
sum of one hundred and twenty mil
lions.
Peace again established, provision was
made for the earliest practicable iquida-
ton of this Indebtedness, in order that it
might not become permanent incum-
brance upon the people. Under wise and
economical legislation the entire amount
was paid in period of twenty years and
the extinguishment of the national debt
filled the land with rejoicing, and was one
of the great events of President Jackson's
administration. Even after it's payment q
large fund remained in the treasury, which,
for safe keeping, was deposited with the
several States, on condition that it should
be returned when required by the public
wants.
In 1S49. the year after the termination
of an expensive war with Mexico, we found
ourselves involved in debt of sixty four
millions of dollars, and this was the amount
owed by the government in 1860, just prior
to the outbreak of the rebellion.
In the spring of 1861 she war of the re-
bellion commenced. Each year of its con-
tinuance made an enormous addition to the
debt, SO that when, in the spring of 1866,
the nation successfully emerged from the
dreadful conflict, the obligations of the
government had reached the vast amount
of twenty-six hundred millions. They had
not yet, however, attained their highest
point, for when the army and navy had
been paid, the volunteer forces disbanded
and the navy largely reduced, it was found
in February, 1885, that our indebtedness
exceeded twenty-eight hundred millions of
dollars.
Having thus referred to the Indebtedness
of the government at various periods of its
existence, it may be we'll to call attention
to brief statement of facts connected with
its expenditures. From the fourth day of
March, 1889, to the thirtieth of June, 1861,
the entire public expenditures were seven
teen hundred millions of dollars. Although
covering a period of seventy-two years,
this amount seems small when compared
with the expenses of the government du-
ring the recent war of four years duration
for, from the first of July, 1861, to the
thirtieth of June, 1866, they reached the
enormous aggregate of thirty three hrn-
dred millions of dollars.
An investigation into the disbursements
since the first day of July, 1866, further
shows that by adding to the expenditures
of the last three years the estimated cost of
administering the government for the
year ending the thirtieth of June, 1869,
MO ohfoin tho Supo Of ciytoop bnn6ro6 I.
lions of dollars as the amount required for
the four years Immediately following the
cessation of hostilities-or nearly as much
as was expended during the seventy-two
years that preceded the war.
It will be seen from this brief review,
that from 1791 to 1861 our public debt was
at no time more than one hundred and
twenty-seven million of dollars, while sub
sequently four years of war expanded it to
twenty-eight hundred million. It will also
be perceived that while, prior to 1861, the
largest annual disbursement was not quite
seventy -four million for the year 1853, the
expenditures during the last three years of
peace have successively been five hundred
and twenty million, three hundred and
forty six million, and three hundred and
ninety three million-three hundred and
seventy-tw million being the amount
which it is estimated will be necessary for
the year ending the 3Oth of June next.
In making this comparison, we should
remember that during the long interval
between 1889 and 1861 the government was
frequently required to make expenditures
of an extraordinary character. Large sums
were paid to Indians as annuities and for
the purchase Of their lands, and expensive
wars were waged against powerful tribes.
Louisiana was acquired from France at a
cost of SIS, ,OGO, 900; Florida, in oonsidera-
ton of five million, was ceded to us by
Spain; California became part of our pos
sessions on payment to Mexico of fifteen
million; while for ten million our govern
ment secured from Texas the territory of
New Mexico. During these periods of our
history we were also engaged in wars with
Great Britain and Mexico-the first waged
against one of the most powerful nations
of the world-the other made additionally
expensive by the prosecution of military
operations in the enemy's territory.
The startling facts thus concisely stated,
suggests an inquiry as to the cause of this
immense increase in the expenditures and
Indebtedness of the country. During the
civil war the maintenance of the federal
government was the one great purpose that
animated orr peODle and that economy