Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1878-09-23
THE NATIONAL FINANCES.

of the Minnesota Agricultural Society
at st. Paul. In response to very cor
dial welcome he made an extended busi-
ness address, setting forth in plain, in
telligible terms and figures the present
encouraging state of our National FL
nances. No one can read these extracts
from his address without feeling of
gratitude and pride in regard to the
prospects of the country. e aill4 /
aamgae THE PUBLIC DEBT. saIed 81
The financial condition of the Gov
by its debt, its receipts and expenditures,
the currency, and the state oftrade with
foreign countries. Let US consider the
present state Of the public debt. The
ascertained debt reached its highest point
soon after the close of the war, in Au-
gust, 1866, and amounted to $2,757,-
9,591.43. In addition to this, it was
estimated that there were enough unad-
justed claims against the Government,
of unquestioned validity to swell the
total debt to $3,O0O,OO0,OOO. 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 remembered that in important speech
es 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 a burden upon ourselves
and our posterity for all time. Some
advocated and many feared reputation.
There were those also who thought a
National 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-
ieved, that the debt was not 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 the public credit, SO
as to refund the debt at lower rates Of
interest.
And now I give you the results. The
debt has been reduced until now it is
only 35,5s0.324.S5. This is re-
dnction. as compared with the ascertain
ed debt thirteen years ago, Of S722,-
1O9,246.58. 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 actual debt at $3,000,-
OOO,OO0-the reduction amounts to
about 81, ,000,000,00O, or one-third Of
the total debt. Thus it has been dem
onstrated that the United States can
and will pay the National debt.
THE ANNUAL INTEREST REDUCED.
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 Dor.
row money to carry debts, know the in
terest. The total amount of interest
bearing debt at the time it reached its
highest point, the 3lst of August, 1865
was as follows: sfa5f s as
Four per cent bonds. ds.......... Sols Ia1 1a1. y y
Five per cent. bonds. 269IIoI2I.o %
Six per cent bonds. 1064,7I2,2795
$40 United States notes $50 100000
| Compound interest notes, per cent. 2l7,O24 1000
Total interest-bearing debt. s. ss1 $50 2s4
The total annual interest charge
| s amounted to................ $l50,9I7, ,69t.S
| This was an oppressive burden Fo
interest alone we were paying more thai
double the total current expenses of tn
Government in any year Of peace PRO
to the war for the Union. With such
burden for interest, it is not strang
that many believed that the debt coul'
never be paid. But as we have seen,
better opinion prevailed. Those VIII
believed that by Strengthening the ma
tional credit, the rates of interest Nigh
be reduced. were sustained by the pub
lie Judgment. The ability and the pur
pose to pay the debt according to it
letter and spirit were demonstrated.
was seen that the successful manage
ment of the debt depended on the rate
of interest to be, paid that a reductlo
of per cent. on our whole Interest
bearing debt would be a yearly savin
in interest of over $20,00O,000; that
reduction of 2 per cent. in the rate
interest would save to the country ovt
$4,000, 900, which is the interest
! 4 per cent. on sl,Ooo,oOo,O0o.
The policy of reducing the debt an
thereby strengthening the public cred
having been adopted, let US observe Il
result in the present condition of IL
public debt with respect to interes
, The total interest. bearing debt, Augu
1, 1878, was as follows:
Three per cent. Navy Pension FUND.-. $4,000
4 l. <ao
. Four and a-half per cent. Z4oO0e
Five per cents. .... ........... .oo1oo'e
: s7fss-8sESs9s & f4s t8se ga - -
Total present interest-bearing debit. $I,So9677.s
The interest on which amounts to Il
sum of s95, I,0O7. 80 per annum.
! thus appears that in thirteen years T
interest bearing debt has been reduc
from S2.38l $40. .296.96 to 1,809. .67l
a sQn0 a gain in the amount of the int