Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1868-11-03
LETTER FROM PRESIDENT JOHNSON.

The National Expendit ures and the Public Debt.
The President Of the United States has adj
dressed the following letter to Gen. Ewing:
Erecutire Mansion, Washington, d. C.,
October "a, lS6S.-Dear Sir-In a recent con-
versation upon the subject of the finances, you
expressed desire to be furnished with somc OF
the leading facts then mentioned, touching the
national expenditures and the public debt. L
now comply with your request, regrettlng, how
ever, that other and more pressing matters have
prevented me from more clearly illustrating the
absolute necessity for immediate reform IN the
financial operations of the government.
In 1916 our national independence was pro-
claimed, and after an exhaustive, Dioooy strus
gle of seven years, was IN 80, achuo"le1goI
Nv the narent government In 1881 me 1ederai
CONSTITUTION was framed, and in 1889 the gov
eminent wentint operation underlts PROVISIONS
hurdened with debt of seventyhve millions OF
dollars created during the war OF the revolution
Immediately upon the organization OF Congress,
measures we're devised for the payment OF the
national obligations and the restoration OF the
public credit, and when in 1872, war Was de
clared against Great Britain. the debt had al
raadv been reduced to forty-ive millions OF dol
lars. It was then largely increased by the three
wears struggle that ensued between the two
nations. until, In 1876 it had reached the sum
of one hundred and twenty seven millions.
Peace again established, provision was made
for the earliest practicable liquidation OF this
Indebtedness, in order that 1t might not become
permanent incumbrance upon the people,
Under wise and economical legislation the ehtire
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 admlnlstra
ton. Even after its payment large fund re-
manned in the treasury, which, for safe keeping
was deposited with the several States, on con,
dition that it should be returned when required
by the public wants.
In lS49, the year after the termination OF an
expensive war with Mexico, We found ourselves
involved in debt of sixty four millions OF dol
lars and this was the amount owed by the gov
erment in 1860, just prior to the outbreak OF
the rebellion. -.
In the spring of 1861 the war of the rebellion
commenced. Each year Gifts continuance made
an enormous addition to the debt, so that when,
in the spring of 1865, the nation successfully
emerged from the dreadful conflict the obliga-
lions of the government had reached the vast
amount of twenty six hundred millions. They
had not vet however attained their highest
no;nt for when the army and navy had been
paid, the volunteer forces disbanded, and the
navy largely reduced, it was found in February,
1864 that our Indebtedness exceeded twenty
eight hundred millions of dollars.
Having thus referred to the indebtedness of
the government at various periods of its exls-
tence, it may be well to call attention to bret
statement of facts connected with its expendl-
lures. From the fourth day of March, 1889, to
the thirtieth of june 1861, the entire public
expenditures we're seventeen hundred millions
of dollars. Although covering period OF
seyentv-tHo years, this amount seems small
when compared with the expenses OF the gov
eminent during the recent war of four years
duration for, from the lst of July, 1861, to the
Goth Of June, 1865, they reached the enormous
aggregate of thirty three hundred millions OF
dollars
An investigation into the disbursements since
the first day Of July, 1865 further shows that
hv adding to the expenditures Of the last three
wears the estimated cost Of administering the
government for the year ending the thrtieth OF
June. 1869, we obtain the sum OF sixteen hmm
dred millions 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; .Gs,
1t will be SEEM from this brief review, that
from 1871 to 1861 our public debt was at no
time more than one hundred and twenty seven
millions ofdollars, while subsequently four years
of civil war expanded 1t to twenty eight hundred
millions 1t will also be perceived that while,
prior to 1861, the largest annual disbursement
was not quite seventy-fuur millions for the year
1858, the expenditures during the last three
wears of peace have successfully been five hun
dred and twenty millions thee hundred and
forty six millions, and three hundred and ninety
three nillions-three hundred and seventy swo
millions being the amount which 1t Is estimated
will be necessary fer the year endlngth thlrtleth
of June next ass
In making this comparison we should re
member that during the long interval between
1889 and 1861 the government was frequently
required to make expenditures OF an extraor
binary character Large sums were paid to
Indians as annuities and TOR the purchase OF
their lands, and expensive wars were waged a.
gainst poWerful tribes. Louisiana was acquired
from France at a cost of SIS. 900 ,00O Florida,
In consideration Of five millions, was ceded to US
by Spain :; California became part of our pos
sessions Oh payment to Mexico of fifteen mil
lions while for ten millions our government Sc
cured 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 pow
erful nations in the world, the other made ad-
ditionally expensive by the prosecution of mill
tary operations in the enemys territory.
The startling facts, thus concisely stated, sug-
gest an inquiry as to the cause OF this immense
increase in the expenditures and Indebtedness
of the country. During the civil arthe main
tenaQcG OF the IeucIdi SOFtiHHeHt Was tHe Ouc
great purpose that animated our people, and
that economy which should always characterize
our financial operations was overlooked In the
great effort Of the nation to preserve It's exis
tence Many abuses, which had their origin in
the war, continued to exist long after it had
been brought to a 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 preservation of
the integrity of their free institutions, have pa
tiently tolerated taxation of the most oppressive
character. Large sums of money continue to
be extorted from them and squandered in use
less and eXtravagant appropriations. Enormous
expenditures are demanded for purposes, the
accomplishment of which requires large stand
ing army, perverson Of the constitution, and
subjugation OF States to negro domination.
With military establishment costing In time
Of peace not less than one hundred millions an
nualy, and a debt the interest upon which
draws from the treasury each year nearly one
hundred and fifty Misunderstanding total of
two hundred and fifty millions Of dollars for
these two items of Expenditure alone-retrench-
ment has become an absolute necessity, or
bankruptcy must soon overtake US and involve
the country in its paralyzng and disastrous re-
suits. II, however, a wise economy be adopted,
the taxes may soon be materially reduced not
merely for the benefit Of few, but in the inter-
est of all. A revenue would yet remain sut
fcient for the administration of the government,
&c we'll nc for such q reductinn of tho mn hc