Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1878-09-11


turn to better times9 / wish to AK
your attention for . few minutes
while 1 present some facts and flg-
urcs which show progressive i'm
provement in the financial condition
of the General Government. II will
be for you to consider what inferen.
ces may fairly be drawn % to their
bearing on the question of q revival
of business prosperity throug hont the
country.
The financial condition of the Gov
eminent of the United States is shown
by its debt, its receipts and expendi-
lures, the currency, and the state of
trade with foreign countries.
Let us consider the present state of
the public debt.
THE AscERTAINED DrnT
reached its highest point soon after
the close Of the war, in August, 1866.
and amounted to $2,757, 609, III AS.
In addition to this, It was estimated
that there were enough unadjusted
claims against the Governn emit of un-
questioned validity to swell the total
debt to $4,000, 100000. How to deal
with this great burden was one of the
gravest questions which pressed for
decision - . result Of the war, It
will be remembered that in impor-
tant 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
war debts; that our debt would be
like that of England-permanent and
burden upon ourselves and our pos.
terity for all time. Some advocated
and many feared reputation. There
were those also who thought Q M.
tional debt was national blessing.
Fortunately, however, the eminent
gentleman at the head of the Tressu-
ry. Mr.. Hugh McCulloch, did not
hold these views. He believed, and
the people believed, that the debt
was not . blessing but burden, and
that it ought to be and could be hon
estly paid. The policy adopted was
to reduce the debt and thereby
strengthen the public credit, 20 % to
refund the debt at lower rates Of in.
terest. And now l give you the re.
suits.
THE DEBT HAS BEEN REDUCED
until now it il only $2.O35, $50, 1924. IS.
This Is reduction, as compared with
the ascertsined debt thirteen years
ago, of $722, log, 246.58. 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 actu-
al debt at $4,000, 0Oo, O,-the reduce
tion amounts to about $1,000, 600, 600,
or one-third Of the total debt. Thus
It has been 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 bur.
den of the war debt. All who have
to borrow money to carry debts know
the Importance Of the question Of in
terest.
THE TOTAL AMOUNT OF MISUNDERSTANDING
ING DEBT
At the time it reached its highest
point, the 3lst of August, 1866, was as
follows:
Four per cent bonds. 8ls. III. Sc
Five per cent bOnds.... .......... 269 l75,727 @.
Six per cent bonds ,Oe4 712,270 81
3-l0 United States notes SSOO 100 OK
compound interest notes, . per
2i7,O2ils
Total interest bearing debt m n Ssl. $40. 29t 0t
The total annual interest charge
announced IN, ,697 81
This was an oppressive burden.
For interest alone we were paying
more than double the total current ex.
penses of the Government in any year
Ofpeace prior to the war for the Union.
With such burden for interest. it ID
not strange that many believed tina,
the debt could never be paid. But,
as we have seen, q better opinion pre-.
vailed. Those who believed that by
strengthening the national credit the
rates Of interest might be reduced
were sustained by the public judg-
ment. The ability and the purpose
to pay the debt according to ito letter
and spirit were demonstrated. II
was seen that the successful manage
ment of the debt depended ON the
rates of interest to be paid +; that re-
duction Of per cent. on our whole
interest-bearing debt would be Q year.
" saving in interest OF over $4,000
GOO; that reduction Of 2 per cent. in
the rate of interest would save to the
country over go, GOO, 600, which 10 the
interest at 4 per cent. on 81, GOO, 600,
600.
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 interest bear
ing debt. Aug. l, 1873, was % fol-
lows:
Three per cent Navy Pension Fund....S II, 900 eco
LOuf Per cent bonds liz 81, 600
-Four and half per cents........... ~. O00. 900