New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1878-09-18
ADDRESS OF PRESIDENT HAYES

Delivered Before the Ntlpne. Ota Nsate
agricultural Society. September S, 1875
Fellow citiz ms of Minnesota: wish to make
my sincere acknowledgements to the Governor
of Minnesota, Gov. Pillsbury; to the Mayor of
St. Paul, Mayor Dawson; to the President of
the Minnesota State Agricultural Society, MIR.
Geo. II. Finch; and to those associated with
them, and to the people of this State whom
they represent, for their kind and & n
erous welcome. l know very we'll that nothing
which can do or say will be a fitting and ad-
equate return for your kindness. But ear
nestly desire to say some things touching the
material interests of the country, which will
tend at least to encourage those who need en-
enlargement and to give increased hope to
those who are already hopeful.
The most interesting question: in public af-
fairs which now engage the attention of the
people Of the United States are those which
relate to the financial condition of the cOun-
try. Since the financial panic and collapse
five years ago, capital and labor and business
capacity have found it hard to get profitable
employment. We have had what is commonly
and properly known as hard times. In such
times men naturally ask, what can be doue?
How long is this stagnation of business 10 last?
Are there any facts which indicate an early
return TO better times? / wish to ask your
attention for a few minutes whileI present
some facts and figures which show q progress
Give improvement in the financial condition of
the general government. 1t will be for you
to consider what differences may fairly be
drawn to their bearing on the question of a
revival of business pros perity throughout the
country.
The financial condition of the government of
the United States is shown by it's debt, its re-
ceipts and expenditures, the currency and the
state Of trade with foreign countries
Let us consider the state Of the public
debt.
The ascertained debt reached its highest
point soon after the close of the war, in Aug
1865, and amounted to $2,757,639, 57l.43. In
addition to this it estimated that there
were enough uuadiusted claims against he
government, of unqnestioned validity, to swell
the total debt to $4,000 $1,000. How to deal
with this great burden was one of the gravest
questions which pressed for decision as re-
suit of the war. 1t will be remem bered that IN
important speeches and in the public press the
opinion was confidently declared that the
debt could never be paid; that great nations
never did pay their debts; that our d bit
would be like that of acknowledgements,
and burden upon ourselves and our posterity
for all time Some advocated and many feared
Reputation. There were those also who
blessing. Fortunately, however. the eminent
gentleman at the head of the treasury, Mr..
Hugh McCulloch, did not hold these views. He
believed, and the people believed, that the debt
was not blessing, but a burden, and that
it ought to be ard could be honestly paid. The
thereby strengthen tn public credit, SO as to
refund the debt at lower rates of interest
And now give you the results.
| The debt has been reduced until now it is only
81, O35, $50, 324.s5, This is reduction, as com
pared with the ascertained debt thirteen years
| s. - ~
of the debt has been paid off in thirteen years.
| If we compare the present debt with the actual
| debt thirteen years ago-placing the actual debt
| at So, 0Uo, 900, 9OU-the reduction amounts to
about $1,UO0. 100000, or one-third of the total
debt. Thus it is demonstrated that the United
States can and will pay the national debt.
! Encouraging as are these facts, they do not
fully show the progress made in relieving the
country from the burden of its war debt. All
who have to borrow money to carry debts know
| the Importance of the question of int rest.
| The total amount Of Understanding debt at
the time it reached it's highest point, the 3lst
| of August, 1865, was al follows:
per cent. bonds e....l..~.-.....-..S 6l8,127 90
| per cent. bonds. Observation-Disclosures. 269175, 1917 R5
6 per cent. bonds. 1851, TO 279 80
7 $40 United States notes. 83'l 600 900 90
Compound interest notes, per cent 2l7,24, 100 90
Total interest bearing debt. ,294 96
! The total annual interest charge
This was an oppressive burden. For interest
alone we were paying more than double the
total current expenses of the government in
| any year Of peace prior tn the war for the Uni
on. With such a burden for interest it is not
! strange that many believed that the debt could
never be paid. But, as we have seen, a better
opinion prevailed. Those who believed that
! by strengthening the national credit the rates
of interest might he reduced, were sustained
j by the public judgment. The ability and the
purpose to pay tn. debt according to its letter
and spirit were demonstrated. It was seen
that the: successful management Of the debt
depended on the rates Of interest to be paid;
that reduction of one per cent. on our whole
Understanding debt would be a yearly saving
in iut ereat Of over twenty millions Of dollars