Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1870-01-25
Boutwell, on the Finances.

traced She nnanclal history OF the
country, in which he said:
"Tho population in 1890 was three
millions, and it's debt seventy five
million dollars, or twenty-five dollars
to each person now, with popula
ton CT forty-two millions, the inter
est-besring debt ia twenty-one mil
lion dollars, or atty dollars to each
person. Ii We assume the value OF
property ia 1870 TO have been equal
to three hundred dollars for each in
hahitant, it would be proper to esti-
mate the aggregate property of the
country at the present moment TO be
at least one thousand dollars for each
inhabitsnt, or 81 aggregate of nine
hundred million dollars at the for
mer period, against forty-two billions
of dollars at the present time. But
whether these estimates of the aggre-
gate property of the country at the
two different periods be correct or
not, it cannot well be denied that the
present average is more than three
times The average in 1890. The re-
suit is that at the former period the
debt was $1,000 per cent. while now
1t Is out 80 per cent. of the property
of the country. Our present condi-
ton il peculiar. The revenue lie
large aad after the payment of the
ordinary expenses of pension aud in
terest, we have surplus Of 800, 000,-
600 annually for the reduction of the
principal of the debt, and the treasu-
ry fires from embarrassment. We
have no occasion to borrow a dollar
for anY purpose whatever. Provisions
can DC easily made for the payment
of the ten-forty bonds, amounting to
$l94, 100000, in 1874, when they
will DO first redeemable, or they may
be postponed for thirty years, as the
public interest may require. The
amount of S283, 900, 900 due in 1891
can be paid at maturity. For the
present we are safe, at least in finan-
cial affairs. The proposition for a
Rew loan has one purpose, and one
only the reduction of the interest
account and if this cannot be ac-
complished we have no occasion to
intruje on the markets of the world.
Our power to place new loan at a
low rate Of interest is in my opinion
wholly dependent upon the magni-
tude ofour surplus revenue. Nothing
but.a menace of payment will induce
holders of six per cent. bonds to sur
render them and adopt a bond bear
ing lower rate of interest. If you
reduce the rate of interest so that it
is barely equal to meet the necessary
expenses and accrued interest, holders
of $40 bonds will resolutely resist
every effort to induce them TO accept
g lower interest. Our new interest
account, excluding the Pacific Rail-
road bonds, is S12,500,000. The
Government hes already bought $780,
000, coo Of their own bonds, the inter-
est on which is paid to the Treasurer,
leaving the actual interest at about
Sl20, 900. A reduction OF the interest
account at s1S,O00,000 q year will
enable Us, if we choose, to make this
the basis Of sinking fund to pay the
principal OF the interest bearing debt
in thirty-fve years. If We reduce
tho revenue to the necessary expen-
SEE of the Government, and the
amount needed to pay the interest at
the present rate, that is to say, a
saving ofsl8, 0O0,0 900 annually in the
amount of interest, it will, in thirty
five years, With the accumulated in
terest, be equal to the bonded debt
Of the United States. Ought there,
then, in the presence Of such q posi-
ble advantage, TO be any doubt as to
the wisdom ofmaintaining thereyenue
at higher rates for one, two or three
years, if necessary? With a large
revenue for three years, the result is
surely accomplished in one way or
the other. IF the public accept the
new bond ut low rate, the question
is settled in favor of the Government
if they decline the opportunity, the
revenues will liquidatethe principal
Of the debt, and the interest will dis
appear proportionately. In either
case, the country succeeds. If, how
ever, we at once reduce the revenues
till they are sufficient for the ordina-
ry expensGs of pensions and the
public creditors shall consequently
refuse to receive q new bond at 8
lower rate of interest, what will be
the conditian Of the country twenty
FIVE years hence? 1t will have PAID
S4, 200, 1000 OOof interest on the pub
lie debt, and the entire principal viii
then be unpaid.
again, say, it is not sufficient fol-
q nation that it is politically indie
pendent of,foreign or hostile powers
l. il not sufficient that the people are
oil citizens'that are free and equal
or even that the political power is il
:heir hands. To all these must b,
added national financial independ
enoe. TNis America has not this
she cannot have until she diminishei
perceptibly her public debt, and rem
ders its payment certain within /
R@nSAAAAAIs Val = nOb Illc cAaIu pie
bat the nations are plenty that ar,
lcrippled in their policy and retarded
in the development of their industrial
pursuits by the magnitude of thei
| debts. Their examples should be
warning TO US. The public debt i
| the only serious result of the war o
aay great magnitude now remaining
but il is o result so serious as to de
! mand sou,e present sacrifices for th
fatnre puslic good. They are sacri
fees, however, which will not inter
fere with the general prosperity 0
the country, nor is the exigency 3,
exact as TO leave us without an OF
portunity Of retiring, from time t
time, these interests which are mos
heavily buriened. On the one hand
by courage and manful accep
lance, temporarily, Of burden con
siderable, no doubt, but not support
able, we secure the permanent pro:
perity end financial independence c
i H. o,,t>, 4,-x-. nm tina ofhar hand