Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1868-10-26
Leeter gro1n President johnson ON
the National Finances.
EXECUTIVE MANSION,
WASHINGTON, u. c., Oct. "a, 1868. J

the subject Of the finances, you expressed
desire to be furnished with some OF the lead
inc facts then mentioned, touching the nation
al expenditures and. the public debt. now
comply with your request, regretting, however,
that other and more Tossing matters have
prevented me from more clearly illustrating the
absolute necessity for immediate reform in the
financial operations of the Government.
In ITS our national independence was pro
claimed, and, after an exhaustive, bloody struS-
gle of seven years, was, IN 1888 acknowledged
by the parent government. In l797 the Federal
Constitution was framed, and Mise the Gov
crnmeut went into operation under It's proVl-
sions, burdened with debt OF seventy-hVe
millions of dollars, created during the war OF
the Revolution. Immediately upon the organ
ization CT Congress, measures were devised for
the payment of the national obligations and
the restoration of the public credit; and when,
in 1912, war was declared against Great Britain,
the debt had already been reduced to forty tive
millions of dollars. 1t was then largely IN
creased by the three years struggle that en-
sued between the two nations, until, IN 1910 IL
had reached the sum of one hundred and TWEEN
tv.seyen millions. Peace again established,
provision was made for the earliest practicable
liquidation of this Indebtedness, in order that
it might not become permanent lncumbrance
upon the people. Under wise and economical
the entire amount was PAID IN
period Of twenty years, and the eXtlngulsh-
ment of the national debt filled the land with
rejoicing, and was one Of the great events OF
President Jackson's administration. Even at
ter its payment, large fund remained In the
Treasury, which, for safe-keeplng, was deposit
ed with the several States, on condition that
it should be returned when required by the
public wants. In lS49, the year after the term
ination of an expensive war with Mexico, We
found ourselves involved in debt of sixty four
millions and this was the amount owed by
the Government in 1860, just prior to the out
break of the rebellion.
In the spring Of 1861 the war OF the rebel
lion commenced. Each year OF its contlnu-
ance made an enormous addition to the debt;
so that when, in the spring of 1865, the nation
successfully emerged from the dreadful conflict,
the obligations of the Government had reached
the vast amount Of twentysix hundred mil
lions. They had not yet, however, attained
their highest point; for, VIXEN the army and
navy had been paid, the volunteer forces dis
banded, and the navy largely reduced, it w@s
found, in February, 1866, that our indebted
ness eXceCueu twenty ClSuu Huu"AS0 H4'i'ioH'
OF dollars =
Having thus referred to the Indebtedness of
the Government at various periods OF Its eX-
istence. it NAV be we'll to call attention to
brief statement Of facts connected With ITS eX-
penditures. ,,
From the fourth day of March, 1889, to the
thirtieth of June, 1861, the entire public ex-
penditures were seventeen hundred millions OF
Collars Although covering period Of seven
ty-tWo years, this amount seems small when
compared with the expenses OF the Govern
ment during the recent war OF four years du-
ration; for, from the first Of July, 1861, to the
thirtieth of June, 1865, they reached the en-.
ormous aggregate Of thirty-three hundred
millions of dollars An investigation into the
disbursements since the first day Of July, 1865,
further shows, that, by adding to the expend:-
lures of the last three years the estimated cost
Of administering the Government for the year
ending the thirticth of June, 1862 we obtain
the sum of sixteen hundred millions Of dollars
as the amount required for the four years I'M
mcdiately following the cessation Of hostilities,
or nearly as much as was expended during the
seventy, two years that preceded the war.
1t will be seen, from this brief review, that
from 1871 to 1861 our public debt was ut no
time more than one hundred and tWenty-scVen
millions of dollars, while, subsequently, four
years Of civil war expanded it to twenty eight
hundred millions. 1t will also be perceived
that While prior to 1861, the largest annual
disbursement was not quite seventy.Iour mil
lions for the year 1858, the expenditures dur
ing the last three years OF peace have success
siVely been five hundred and twenty millions,
three hundred and forty.six millions, and three
hundred and ninety three millions-thrce hun
= bo;p Ea M
which it is estimated will be necessary tor the
year ending the thirtieth of June next.
In making this comparison, we should re-
member that during the interval between 1850
and 1851 the Government was frequently re-
duircd to make expenditures Of an eXtraordin-
airy character. Large sums were paid to In
dams as aDnuities. and for the purchase Of
their lands and expensive wars were Waged
against powerful tribes. Louisiana was &C.
quircd from France at cost Of fifteen millions
of dollars Florida, in consideration of five
millions, was coded to US by Spain California
became part our possessions on payment to
Mexico of fifteen millions; while for ten mil
lions our Government secured from Texas the
territory of New Mexico. During these Pc
RODS 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 ex-
pensive by the prosecution Of military opera
tons in the encmy's territory.
The startling facts, thus conclsely stated,
suggest an inquiry as to the cause of this I'M
mense increase in the expenditures and indebt-
edness Of the country. During the civil War
the maintenance of the Federal Government
was the one great purpose that animated our
people, and that economy which should always
characterize our financial operations was over
looked in the great effort OF the nation to pre-
serve its existence. Many abuses, which had
their origin in the war, continued to exist long
after it had been brought to a triumphant con-
clusion, and the people, having become accus-
toned to lavish expenditure of the public
money for an object so dear to them as the pre-
ser7ation of the integrity Of their free institu-
tons, have patiently tolerated taxation of the
most oppressive character. Large sums ofmon;;
ey continue to be extorted from them, and