The New York herald., 1870-01-11
THE PUBLIC DEBT.
Lecture OF Socretury Boutwell, Before tho
Grand Army Of tho Republic Departmsnt
Of tho Potomac.

kccturo OIL S0cretury BOutWeu Before tho
Grand Array Of tho Republic Department
Of tho Potomac.
WASHINGTON, Jan. 1S, 1870.
Secretary Boutwell, TO- might delivered lecture for
the benefit Of the charity fund OF the Grand Army OF
the Republic, Department OF the Potomac, at Lincoln
Hall, which was filled with ladies' and gentlemen.
He traced the history OF the country at length show
ing that resistance to tyranny and love Of free
dom were characteristic OF the colonists, and
that the general spirit OF the people found
expression in the declaration OF American inde-
pendence. He asserted that the student OF history
will nnd an intimate connection between the rejec.
ton OF SO much Of the original draft OF that decara-
tt0n az denounced the slave trade and the attempt
to dissolve the Union In 1850 ana 1891 independence
was inevitable. II came and 1t secured equality 70
the colonies AZ States In full recognition or the
American Union and It's rightfu position among the
nations OF the world. The cvil war was alike inev-
table. II came and secured freedom and equality to
the citizen. The wsr for independence gave Us
States and 1t gave nation, but citizenship was
privilege and was confined to a class. The states
and the nation emerged from the civil war purified
and chastened, while citizenship is no longer
privilege merely, but Ia Is now established as right
But 1t Is not enough that we independent p0lit
cally as nation.
1t Is not enough that the inhabitants ofthe coun-
try are all citizens and equal before the law. ma
tion cannot act fully and freely before the world
she s not independent in the largest and best sense
unless she is comparatively free OF debt,
with capacity to raise revenues much In ex-
cess or ordinary demands and credit
unstained by any act OF dishon0r ana relieved Of
every apprehension even In the minds OF the most
timid. This statement suggests the only remaining
difficulty In our country's path. AS the men OF the
Revolutionary did not hesitate to assume their
share OF the burden OF the war debt so l
trust that you who have made so great
sacrifices for the Union will courageously
initiate their example. At the close Of the
Revolutionary War the interest bearing debt Of the
lation Of the country was less than three millions
but accepting that NUMBER as the nearest approx.
nation TO tue truth the debt averaged twenty-five
dollars to each person. The present interestbearng
debt Of the United States can be put az
about sa,looooo, GOO, ana It Is not unrea-
fore, averages nifty dollars for each person. it is
sao M IL S 1as
NV 0ls sS saIfs sss assume s'ss, s
th{ss. hundred dollars Tor essh lhh.s.nt .',nt i
would be p6per TO esii..s the aygrsga,s .oaso ~
property o{ tha Country at the present. 'sac. mo-.
or fass Il 2eS sSgaSd g 1889 Ssass SSS 5
sge Iofmsr period agailst s42 900 at the pre-.
s %fspS y fs ouSry Ssss e. estimates TN tso q ae
eht periods Re correct or not, It cahnot well DO
denied that the present average is more than three
d %ss ae a me
per cents while at the present time 1t is only 1--WE
ba sn & sSa ns
yet relatively 1t 10 an under estimate rather than an
over estimate Of the present resources. -
fersons adIiipisration. and for the people Of the
seH tsss38s qSah aEpS ps 9a ssr% =
millions per annuin From 1901 70 1909 the country
was subjected to oil the taxation which those
pSr ssp was Re' ssaas 'Ss ssssprs lsaosi Gi
II II; ~ s s,s;s sss
terest, ST. we have surplus Of 3Te hundred Millions a
guay for the reductio9 OF the principal OF the debt.
have no occasion TO borrow dollar Tor any purpose
whateyer. Provision can be easily made for the
payment Of the ten.forty bonds amounting to
more. as the public interest may require. The
maturity For The present we are at ease in nancia
affairs. Tho proposition for a new loan has
Of the u1
plished we have no occasion to tntrnde upon the
markets OF the. world. Our power TO place
the magnitude Of our surplus revenue. Nothing
OF Six per cent bonds TO surrender them and accept
bond bearing lower rate OF interest II you re-
duce the revenue SO tnas y barely adequate 70 meet
the holders of fve.twenty bonds will resoutely
resist every EFFORT TO induce them to accept lower
Our net interest account, excluding Pacific Rail.
way bonds, is $126, 5000. The government has
interest on which is pad to the treasurer iesying
our actual interest at about Sl20 OOO The reduc
tion Of the interest account $ls 600 year win
debt a a ernsns gsas q as ns
government ana the amount needed 70 pay The
ssSns Of v snSs SnSPs q ,as
accumulated interest, be equal to tpe bonded
debt Of the United States. Ought there then III the
@ rate S two of Val TIRES eeysaas yssrs
ysas sss result WIN 3 .slssS sS ss:S%p.d FL s %
y ,sSss :ss'!sS sisi
81 pSs ass ss n cp
powever, we at once reduce the revenues TIL
they are only sufficient cs for ordinary expenses,
receive new bond at lower rate Of interest what
@ 3; @ Z @ SS9s a q
then be unpaid. Again. say, 1t Is not suficient FOR
Of foreign or hostile powers: IL Is not sum
cient that the people are all citizens; that they
u their hands TO all these must be added na.
not This she cannot have until she dminlshes
perceptibly her public debt aud renders its pay
ment certain within generation. dare not
cite examples; but the nations are many
that are crippled In their policy and
retarded In the Development OF their industries bt
the magnitude Of their debts. Their example should
be warning to us. The public debt ID the only
serious result OF the war Of any considerable magni
tude now remaining; but Il s result 50 serious as
to demand some present sacrifices for the future
public good. They are sacr1ces, however,
which will not interfere with the general
prosperity OF the country; nor Is the exi-
Rerlcy 80 exact as to leave us without the oppor-
tnnlty Of relieving from time to time those interests
that are most heavily burdencd. On the one hand,
by courage and the mantui acceptance @ temporarily
portable, we secure the permahent prosperity
and financial independence Of the coun.
try. On the other hand II we shrink
from the task and the duty, may not say OF mas
tering these dilrculties at once, we increase the
oOU "a hur n and leave another