Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-09-06

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latter were Mr.. Wright, president Of the COM
pany, Mr.. Sargent, Judge Lynde and son, Wis
consin, Gen. McLaren, DR.. Stewart, Congress-
man Watson, Pennsylvania, Senator Window.
Congressman Strait, Gov. Pillsbury and lady,
Gen. Sibley, Senator Ramsey and lady, CAPTAIN
the GLOBE and polkszeitung. There was not
half dozen persons present to see the train off,
which moved out Of the depot at 10 o'clock
The party will breakfast at Fargo tomorrow
and then proceed to the James Valley. The
President will spend the Sabbath in St. Paul as
the guest of Senator Ramsey.
Another Report of Hayes Speech.
President Hayes supplied the Associated
Press throughout the country with advance
copies of his speech, but he departed so much
from the text in delivery that the GLOBE pres
ents an accurate sterographlc report of it's own.
That MIR. Hayes may have the benefit of his
deliberate prepared utterances, we give the
official advance sheet report also. It is as fol-
lows
Fellow citizens of Minnesota: l 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," Mr.
Geo. II. Finch; and to those associated with
them, and to the people Of this State whom
they represent, for their kind and gen
erous welcome. know very we'll that nothing
which l can do or say will be q 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-
couragement and to give increased hope to
those who are already hopeful.
The most interesting questions 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
hive years ago, capital and labor and business
capacity have found it hard to get profitable
employment. We have had what is commonly
ana properly known as hard times. In such
times men naturally ask, what can be done?
How long is this stagnation of business to last?
Are there any facts which indicate IN early
return to better times2 ! wish to ask your
attention for few minutes whileI present
some facts and figures which show progress
slve improvement in the financial condition 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 q
revival of business prosperity 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 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, 689, 571.43. In
addition to this, it was estimated that there
were enough unadiusted claims against the
government, of unquestioned 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 as re-
suit of the war. It will be remembered 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 war debts; that our d. BIT
would be like that Of England-permanent,
for all time. Some advocated and many feared
reputation. There were those also who
thought that . national debt was national
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 a blessing, but burden, and that
it ought to be and could be honestly paid. The
policy adopted was to reduce the debt and
| thereby strengthen ths 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
80, ODE, $50 324.85. This is q reduction as COM
pared with the ascertained debt thirteen years
ago. of 1922, 109, 246.5S. 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 $4,000, 900, 000-the reduction amounts to
about 81, O00, 100000 or one-third of the total
debt. Thus it is demonstrated that the United
States can and will pay the national debt.
Encouraging as are these facts, they do not
fully show the progress made in relieving the
country from the burden Of it's war debt All
who have to borrow money to carry debts know
the Importance Of the question of interest.
The total amount of interest-bearing debt at
the time it reached its highest point, the 31st
of August, 1865, was as follows:
per cent. bonds .............$ 618127 90
per cent. bonds Observation-Disclosures. 269,175,727 65
per cent. bonds. .............. 1864, 712279 50
1910 United States notes. $50, 900 900 OO
Compound interest notes, per cent 217,O24,l6O on
| Total interest bearing debt 1881, 53O294 96
The total annual interest charge
amounted to. 1905 ,697 "a
| 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 Uni
! on. With such 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 tina,
by strengthening the national credit the rates
of interest might be reduced, were sustained
| ny tne pupnc judgment. Inc ability and the
purpose to pay the debt according to it's lette,
and spirit were demonstrated. 1t 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 yearly saving
| in interest of over twenty millions of dollars
That a reduction of two per cent. in the
| rate OF interest would save to the country over
| $40,000,000, which is the interest at four pei
cent on a thousand million dollars.
! The policy of reducing the debt and thereby
strengthening the public credit having been
| adopted let us observe the result in the present
condition of the public debt with respect to
interest. The total interest bearing debt
| August l, 1878, was as follows
per cent. Navy-pension fund. 14,OOO, OOC
per cent. bonds. ACKNOWLEDGEMENTS ,OOC
| Az per cents. 10000
5per cents. 703, $3.50
per cents. 7S3, 56l ,25(
Total present Understanding debt ST., SOC