The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1868-10-27
Letter from President, Johnson.
THE NATIONAL EXPENDITURES
. -, AND. THE PUBLIC DEBT.

WASHINGTON, Dc Vi, Oct0oeT L0.-Ine
President Of the United States has addressed
the following letter to General Ewing:
Executive Mansion, Washington, D. c.,
October "a, 1868. Dear Sir,--In recent
conversation upon the subject Of the finances
| you expressed q desire to be furnished with
some of the leading facts then mentioned
touching the national expenditures and the
public debt. / now comply with your
request, regretting, however, that other and
more pressing matters have prevented me
from more clearly illustrating the absolute
necessity for immediate reform in the finani
cial operations Of the Government b. =.
In 1776 our national independence was
proclaimed, and after an exhaustive, bloody
struggle of seven years was, in 1883, &C
knowledged by the parent government. In
| 1857 the Federal Constitution was framed,
and in 1889 the Government went into ope-
ration under its provisions, burdened with
a debt of seventy-fve millions of dollars,
created during the war of the revolution.
Immediately upon the organization of Con-
gress measures were devised for the pay
ment 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-fve millions Of dollars. 1t was
then largely increased by the three years
struggle that ensued between the two ma
| tons until, in 1916, it had reached the SUN
| of one hundred and twenty-seyen MILLIONS.
Peace again established, provision was
made for the earliest practicable liquida
| ton Of this Indebtedness, in order that it
might not become permanent incumbrance'
| L., 1o nd oyoI
| cal legislation the entire amount was paid
in period of twenty years, and the extin-
guishment of the national debt filed the
land with rejoicing, and was one Of the
great events of President Jackson's adj
| ministration. Even after its payment a
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. - 30
In lS49, the year after tho termination
of an expensive war with Mexico, we found
ourselves involved in a debtof si1ty-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 the ware of the re-,
bellion commenced. Each year of its con-
| tinuance made an enormous addition to the
| debt, go that when, in the spring of 1865,
the nation successfully emerged from the
| dreadful conflict, the obligations Of the Go
vernment 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, 1866, that our indebtedness
exceeded twenty-eight hund1el millions Of
dollars.
Having thus referred to the Indebtedness
of the Government at various periods of its
existence, it may be well to call attention
10 brief statement of facts connected with
it's expenditures. From the 4th day of
March, 1889, to the 30th day of June, 1861,
the entire public expenditures were seven
teen hundred millions Of dollars. Although
covering period of seventy-two years, this
amount seems small when compared with
the expenses of the Government during the
recent war of four years duration for,
from the lst of July, 1861, to the 30th Of
June, 1865, they reached the enormous
aggregate of thirty-three hundred millions
Of dollars. .-..sf @-..s
An investigation into the disbursements
since the 1st day of July, 1865, 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 30th Of June, 1869, we OBJ
tain the sum Of sixteen hundred millions of
dollars as the amount required for the four
years Immediately following the cessation
of hostilities-or nearly as much as was ex-
pended 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-seven millions of dollars, while sub
seuuentiy 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-four millions for the year
1858, the expenditures during the last
| three years of peace have successfully
been five hundred and twenty millions,
three hundred and forty six millions, and
| three hundred and ninety-three millions
three hundred and seventy-two millions
| being the amount which it is estimated will
be necessary for: the year ending the 3Oth
| of June next. - &sS isA-.!
In making this comparison we should re-
member that during the long interval be-
tween 1889 and 1861 the Government was
| frequently required to make expenditures
of an extraordinary character. Large sums
were paid to Indians as annuitles 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, 100000; Florida, in considera-
| ton of five millions, was coded to us by
Spain California became a part of our
| possessions on paying to Mexico fifteen
| millions while for ten millions our Go
| yernment 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 ma
tions of the world-the other made addi-
| tionally expensive by the prosecution of
military operations in the enemy's terri
tory. tssaa ..#s
The startling facts thus concisely stated
suggest 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 our people, and that economy
| which should always characterize our imam
cial operations was overlooked IN the great
| effort Of the nation 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 a lavish expenditure of the public money
for an object so dear to them, as the preser-