The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-10-31

Gen. Efins:
WASHINGTON, ID. c., Oct. Is, 1868.
Dear Si--In a recent conversation upon the
subject OF the finances, you expressed desire 10
be furnshed with some Of the leading facts then
mentioned, touching the national expenditures
and the public debt. i now comply with your
request, regreiting, however, that other and more
pressing matters have prevented me from more
clearly illustrating the absolute necessity for i'm
mediate reform in the financial operations of the
government.
In lI76 our national independence was pro-
claimed and alter an exhaustive bloody struggle
of seven years was, In 1888, acknowledged by the
parent government. 10 l7S7 the federal Consti-
tuition WAS framed. and in 1883 the government
went into operation under its provisions. bur-
dened with debt of seventy five millions OF dol
lars crPated during the war OF the revolution.
Immediately upon the organization OF Congress,
nationa obligations and the restoration OF the
public credit, and when, in 1872, war was declared
ngainss Great Britain the debt had already been
reduced to forty.five millions of dollars. II was
then largely increased by the three years. strug-
gle that ensued between the two nations until, In
lsl6, il had reached the sum Of one hundred and
twenty seven millions.
Peace again established provision was made
for The earliest practicable liquidation of this in
debtedness, In order that II might not become a
permanent incumbrauce upon the people. Under
wise and economical Legislation the entire amount
was paid 10 period of twenty years, and the ex.
llDgultlmtut Oh lue uduOudl utDb ulltu tuc lduu
with rejoicing, and was one Of the great events
of President Jackson's administration. Even after
its payment large fund remained in the treasury,
which. for safe keeping, was deposited with the
several States, on condition that il should be re-
turned when required by the public wants.
In ls49, the year after the termination OF an ex.
pensive war with Mexico, we found ourselves in
volved in debt of sixty-four millions of dollars,
end this was the amount owed by the government
ia 1890 Just prior to the outbreak of the rebellion.
In the spring Of 1861 the war of the rebellion
commenced. Each year of its continuance made
an enormous addition Of the debt, 50 that when,
in the spring of 1865, the nation successfully
emereed from the dreadful conflict, the obliga-
lions of the government had reached the vast
amount of twenty-six hundred millions. They
had lot yet, however, attained their highest
The volunteer forces disbanded and the navy
reduced. il was found in February, 1865, that
ourfn1ebtedness exceeded twenty-eight hundred
miIioas Of dollars.
Having thus referred to the Indebtedness of the
government az various periods of its existence, it
may be well TO call attention TO brief statement
of facts connected with its expenditures From
the, fourth day of March, l7s9, to the thirtieth
of June, 1861, the entire public expenditures
were seventeen hundred millions of dollars.
Although covering period of seventy-two years,
this asaount seems small when compared with the
expenses Of the government during the recent war
of four years duration, for from the frat of July,
1851 20 the thirtieth of June, 1866, they reached
the enormous aggregate of thirty.three hundred
millions of dollars.
An investigation into the disbursements since
The fret day of July, 1865. further shows that by
adding to tho expenditures of the last three years
the estimated cost of administering the govern
nent for the year ending the Both of June, 1859.
we obtain 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 was expended during the
EeyeDty-two years that preceded the war.
II will be seen, from this brief review, that
IN mr. doh WQ al M fma
more than one hundred and twenty seven 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 -four millions for the year 1853, the ex-
penditures during the last three years Of peace
have successfully been five hundred and twenty
miIlions, three hundred and forty-six millions,
ana ninety.three millions-three hundred and
seyesty-two millions being the amount which il is
estimated will be necessary for the year ending
The d0th Of June next
ln:making this comparison we should remember
that turing the long interval between 1889 aud
1S6l the government was frequently required to
make expenditures of an extraordinary character.
Large sums were paid to Indians as annuites and
for the purchase Of their lands, and expensive
wars were wsged against powerful tribes L1usi-
ana Twas acquired from France at q cost Of
SIS go 900; Florida in consideration of s. ,000.-
OOO, twas coded to us by Spain California be-
camt a part of our possessions on payment to
gov&rnment secured from Texas the Territory of
NeA Mexico. During these periods of our his.
forgive were also engaged in wars with Great
Britsin and Mexico-the first waged against one
of TIE most powerful nations of the world, the
othee made additionally expensive by the prose-
cutitn of military operations in the enemy's ter
ritof5.
The startling facts, thus concisey stated, sug.
gest ian inquiry as to the cause OF this immense in
cregse In the expenditures and indebtedness of
the country. During the civil war the main.
tenshce of the federal government was the one
greet purpose that animated our people, and that
ecoaomy which should always characterize our
fnapcial operations was overlooked in the great
efost of the nation to preserve its existence. Many
abu3es, which had their origin In the war. contn-
uedso exist long after IL had been brought to
triu;nphant conclusion, and the people having be-
cone accustomed to a lavish expenditure of the
rubfic money for an object so dear to them as the
preservation Of the integrity Of their free instiu
tons, have patiently tolerated taxation Of the
most oppressive character. Large sums of money
continue to be extorted from them, and squarder.
ed in useless and extravagant appropriations.
Enormous expenditures are demanded for pur-
poses the accomplishment of which requires a
large standing army, perversion OF the C0nstitu-
tion and subjugation Of States to negro DONNA
tion.
Ewith military establishment costing In time of
peace not less than one hundred millions annual
ly, and debt the interest upon which draws from
the treasury each year nearly one hundred and fifty
miliions-makDg total OF two hundred and fifty
millions of dollars for these two items of expen.
ditures alone retrenchment has become an abso.
Lutte necessity, or bankruptcy must soon overtake
ms and involve the country in its paralyzing and
disastrous results. II, however, a wise economy
De adopted, the taxes may soon be materially re-
duced, not merely for the benefit Of few but
in The interest of all. A revenue would yet re-
Iaatn sufficient for the administration Of the gov
frr5nent, 90 well as for such reduction Of the
putic debt as would In q few years relieve the
People from millions of interest now annually
drawn from their resources.
The idea that the debt is to become permanent
should be at all times dscountenanced. as involv
ing taxation too heavy to be borne, aud payment
of an amount in interest every sixteen years equal
10 the original sum. The gradual liquidation of
the public debt would by degrees release the
large capital invested in the securities of the
government, which, seeking remuneration In other
sources of income. would add to the wealth Of
the nation. upon which 1t Is now so great drain.
This immense debt, If permitted to be come psrms.
nent and increasing, must eventually be gathered
Into the hands Of the few and enable them to ex-
ert dangerous and controlling power In the
affairs OF the government. The debtors would be.
come the servants of the lesders-the creditors
4. the masters OF the people. II is now our boast
that we have given freedom to three milIions of