Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1878-09-13
PRESIDENT HAYES.
His Able Speech ut st. Paul.
Evidences of Returning Prosperity.

! Evidences of Returning Prosperity.
The President had a most brilliant
and cordial reception from the State Of
ficers and people of Minnesota at ST.
Paul on the 9TH inst, upon the occasion
OF the opening of the Minnesota State
Fair. Great crowds of people came
from all parts of the State to greet him
and do him honor, and the enthusiasm
was unbounded The President, i'm
proving the OCCASION made most pow
erful speech, setting forth with consise-
ness the state of the country, and point
ing out the increasing evidences of COM
ing prosperity. The President said
FELLOW CITIZENS OF MINNESOTA:
wish to make my sincere acknowledge
ments to the Governor of Minnesota,
Governor Pillsbury; to the Mayor of St.
Paul, Mayor Dawson; to the president
OF the Minnesota State Agricultural So
ciety, Mr.. George French, and to those
associated with them, and to the people
OF this State whom they represent, for
the kind and generous welcome. | know
very well that nothing | can do or say
will be fitting and adequate return for
your kindness, but earnestly desire to
say something touching the material in
terests of the country which will tend,
at least, to encourage those who need
encouragement and to give increased
hope to those who are already hopeful.
% tnr 1io
affairs which now engage the attention
of the people of the United States are
those which relate to the financial CON
dition of the country Since the finan-
cial panic and collapse five years ago,
capital and labor and business capacity
have found it hard to get profitable en-
ployment We have had what is com
monty and properly known as hard
times. In such times men naturally ask,
What can be done? How long is this
stagnatlon to last? Are there any facts
which indicate an early return to better
times? | wish to ask your attention for
few minutes while | present some
facts and figures which show progress
i've improvement in the financial condi-
ton OF the general government. 1t will
be for you to consider what differences
may fairly be drawn as to their bearing
on the question Of a revival Of business
prosperity throughout the country.
The financial condition of the Govern
ment of the United States is shown by
its debt, It's receipts ana expenditures,
the currency, and the state of trade with
foreign countries.
Let us consider the present state Of
the public debt. The ascertained debt
reached it's highest point soon after the
close of the war, in August, 1865, and
amounted to $2,757, 6S9,57l.43. In ad-
dition to this, it was estimated that
there were enough unadiusted claims
against the government, Of unqucstioned
validity, to swell the total debt to So
000,000,000. How to deal with this
great burden was one of the gravest
questions which pressed for decision as
result of the war. 1t will be remem-
bered that in important speeches and in
the public press the opinion was conf
IDENTIFY expressed that the debt could
never be paid; that great nations never
did pay their war debts; that our debt
would be like that of England -perma-
nent, and a burden upon ourselves and
posterity for all time. Some advocated
and many feared reputation. There
were those also who thought that a ma
tional debt was national blessing
Fortunately, however, the eminent gen
tleman at the head of the Treasury, Mr.
Hugh McCulloch, did not hold these
views. He believed, and the people be-
lieved, that the debt was not blessing
but burden, and that it ought to be
and could be honestly paid The poll
cy adopted was to reduce the debt, and
thereby strengthen the public credit, so
as to refund the debt at lower rates Of
interest And now | give you the re
suits.
The debt has been reduced until now
it is only $2,035, $50, 32495. This is a
reduction, as compared with the ascer-
tanned debt thirteen years ago, of $722,-
100, 1868 More than one fourth 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 $4,000 600 00-the
reduction amounts to about 81 100000
600, or one third of the total debt Thus
it has been demonstrated that the Uni
ted 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 it's war debt. All who have to Dor
row money to carry debts know the i'm
portance of the question Of interest.
The total amount Of Understanding
debt at the time it reached its highest
point, the 31st Of August, 1865, was as
follows:
per cent. bonds. ...............S GlS, 19S
per cent. bonds. 1853, rs, 727 G5
s per cent; bonds. ............ 1064, ~, 21o 81
7 $40 United States notes.. $40, 900, 00000
Compound int notes, 6 per cent 2l7,Wf 1850 90
Total Understanding debit. $2,3sl $40, POI 9G
The total annual interest
charge amounted to........... Sl60,9l1, 1854
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
to the war for the Union. 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 ma
tional credit the rates of interest might
be reduced, were sustained by the pub
lie Judgment. The ability and the pur-
pose to pay the debt according to its
letter and spirit were demonstrated. 1t
was seen that the successful manage
ment of the debt depended on the rates
of interest to be paid; that Il reduction
of one per cent. on our whole interest
bearing debt would be yearly saving in
interest of over $20,000,060. That re-
duction of two per cent. in the rate OF
interest would save to the country over
$40, 100000, which is the interest at 4
per cent. on a thousand millions of dol
lars.
THE POLICY OF REDUCING THE DEBT
and thereby Strengthening the public
credit having been adopted, let us OBJ
serve the result in the present condi-
ton of the public debt with respect to
interest. The total Understanding debt
Aug /, 1878, was 81 ,S09,677, 900, the in
terest on which amounts to the sum OF
800, 1S1 ,007.50 per annum. 1t thus APP
pears that in thirteen years the inter
eat-bearing debt has been reduced from
$2,3S1 $50, 1866 to $780, 67 500, a
gain in the amount of the interestbear-
IL l.. SST1 OSO OQi Of