The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-02-09
Increase Of the Public Debt.

increase
The bill reported from the Committee o
Ways and Means to prevent the increase o.
the bonded debt of the United States comes
not day too soon, for the debt under the
manipulation of Mr.. McCulloch has been
steadily and constantly increasing. 1t has in
creased even in nominal amount, according to
his own figures; but the weight of it upon the
public has been considerably augmented by the
conversion of the non-interest and currency
interest bearing debt into that bearing gold in
terest The lowest point the public debt ever
reached since July, 1865, was in November,
1867, when the figures stood So, 49l, 504, 450.
This was nearly two years and half after the
war closed, and at the time, we suppose, all
the outstanding liabilities upon the Treasury
arising from the war had been paid or carried
to the debt. The country was, in fact, in a
normal condition as regards its revenues and
expenditures. Well, from November, 1867, to
February, lS69-ffteen months-the debt has
been increased sixty-five millions. Mr.. McCul-
loch in his last official statement takes the
year, from February, 1868, to February, 1869,
and shows an increase for that period Of near
twenty-nine millions. We prefer to start three
months earlier, when the debt had reached
the lowest figure and from which date it has
been constantly increasing In time of peace
and several years after the war closed, then,
the debt has increased in fifteen months sixty
five millions, and that, too, when the yearly
revenue approaches five hundred millions in
currency. Is not this n1onstrous9 Can we
avoid national bankruptcy and reputation if
this frightful extravaganza and mismanage-
ment Of the finances continue?
It is true fifty-two millions Of this increased
debt is on account of the Pacific Railroad ;
but even deducting that there has been an in
The bonds issued to the Pacific Railroad, how
ever, are as much part of the debt as the
fve-twenty bonds. They are called loan,
but most likely the government will have to
pay them. Be that as it may, these bonds are
part of the public expenditures which ought
to be kept within the income of the govern
ment.
The conversion Of the currency interest and
gold interest has probably augmented the
weight of the whole thirty to forty millions a
year. This has been the result Of the igno-
rance and stupid Encouragement Of Mr..
McCulloch. The cost of changing and re-
changing the debt from one form to another, in
the way Of commissions to Jay Cooke and
others, and in the expenses Of the Treasury
Department for that purpose, has not been
less than fifteen to twenty millions. The only
idea the Secretary had was the interest of the
bondholders. He has had no regard for the
people. Gold payments-hurrying on to gold
payments-and to force that by all the means
in his power has been the only thought of his
mind. His manipulation Of the debt in the
ruinous manner we speak Of has been the
result of this one idea. And how much nearer
are we to specie payments through his financial
policy and operations? Had he bought up
and cancelled gold interest bearing bonds
with the legal tenders he has withdrawn and
destroyed, and not changed the currency
interest debt, the country would have been
saved thirty or forty millions year, and the
debt would have been reduced-or at least
that portion Of it which is any burden-several
hundred millions. Then we should have been
nearer specie payments than we are now.
Let the world see that our debt is being con-
siderably diminished year after year, and the
credit of the government will rise, and with
that we should reach specie basis. Mr.
McCulloch began at the wrong end. Let us
hope more able man may be placed at the
head Of the Treasury Department under the
new administration. The only way to keep
the debt from increasing as it has been-the
only hope Of ever diminishing it's through
greater economy on the part of Congress and
better management of the finances of the
country.