The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-09-20
PRESIDENT HAYES SPEECH.
An Interesting Review of the Business
Outlook.
Facts and Figures Given at the Mime
sofa. State Fair. at St. Paul.

FELLOW-CITIZENS OF MINNESOTA:
wish to make my sincere acknowledge
ments 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.. George French, and to those associ-
ated with them, and to the people OF
this state whom they represent, for their
kind and generous welcome. l know
very well that nothing 1 can do or say
will be fitting and adequate return for
your kindness, but l honestly desire to
say something touching the material in
terests of the country which will tend at
least to encourage those who need en-
cOuragement, and 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 country. 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
done? How long is this stagnation of
business to last? Are there any facts
which indicate an early return to better
times ?. / wish to ask your attention for
a few minutes while l present some
facts and figures which show a progress
sive improvement in the financial con-
dition of the general government. 1t
will be for you to consider what infer
ences may fairly be drawn as to their
bearing on the question of revival of
business prosperity throughout the
country. The financial condition of the
government of the United States is
shown by it's debt, its receipts and ex-
penditures, the currency, and the state
OF trade with foreign countries. Let us
consider the present state of the public
debt
The ascertained debt reached its high
est point soon after the close of the war,
in August, 1866, and amounted to So
757 $3.50, 81 .43. In addition to this, it
was estimated that there was enough I'M
adjusted claims against the government
of unquestiOned validity to swell the to-
tai debt to $4,000, 100000 How to deal
with this great burden was one of the
gravest questions which pressed for de-
cision as a result of the war. 1t 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 debt; that our debt
would be Ike that of England-perma-
nent-and burden upon ourselves and
our pOsterity for all time. Some advo-
Gated and many feared reputation
There were those who thought national
debt was national blessing. Forum
ately, 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 a
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 in
| terest. And now l give you the results.
The debt has been reduced until now it
is only So, OBS, $50, 324.S5. This is a re-
ductiOn, as compared with the ascer-
tanned debt thirteen years ago, of $722,-
1O9, 246.5S. More than one-fourth of the
debt has been paid off in thirteen years
II we compare the present with the actu-
al debt thirteen years ago-placing the
actual debt at three billions-the reduc-
| ton amounts to one billion, or One-third
of the total debt. Thus it has been de
mOnstrated that the United States can
and will pay the national debt. Encour-
aging 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 CUES
ton of interest.
The total amount of interest-beari
debt at the time it reached its highest
point, the 31st of August, 1865, was as
follows:
Four per cent bonds .. $6ISI27 9s
Five per cent bonds. ........., $50. l75.727 65
Six per cent bonds. 1854 7l2 979 80
Seven three tenths United
States notes. $4,000 600 90
Compound interest notes, 6 per
cenC-'--..-- observation-disclosures. 2l7,O24, l60 90
Total interest-bearing debts2 38I. $50. a94 96
| Total annual interest charge
| amounted tO......-...%....... 150, 977, 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 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 national credit
the rates of interest might be reduced
were sustained by the public Judgment.
The ability and the purpose to pay the
debt, according to its letter 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 per cent on
our whole Understanding debt would
be yearly saving in interest of over
$40, OO0, 900; that a reduction of 2 per
cent in the rate of interest would save
the country over $4,000 900, 600, which
is the interest at per cent on $1,000
100000
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 Understanding debt, Aug. 1,
1873, was as follows:
Three per cent. Navy pension fund $14 900 OOC
Four per ,; IL IL ~ OO
| rive per cents ...--.-..-.......... 703 266, CSC
DIX per ents-.-------...... 7SS,5ol,2 go
Total present interest bearing
oeo1...-.-----------. -..$l .6O9, ST, 800
The interest on which amounts to the
sum of$95, 1S1 ,O07. 40 per annum. II thus
appears that in Is years the interest
bearing debt has been reduced from So.
81 $50, 30. 496 to 81, 800, 677 800, a gain
in the amount of the interest bearing
debt of $571 ,852, 1896. The reduction
of the annual interest charge is $55, 1896.
6SO.34, or more than so per cent of what
We now pay. If the reduction of annual
interest were placed in sinking fund at
per cent. interest, it would pay off the
whole debt in less than % years.
There has been another gratifying and
important improvement in the state OF
the public debt. A few years ago our
bonds were largely owned in foreign
countries. 1t is estimated that in 1871
from $500, 100000 to 81, 600, 600, 600 were
held abroad. We then paid from $50.
100000 to $50 600 annually in Eu.
rope for interest alone. Now the bonds
are held mainly in our own country. II
is estimated that five.sixths of them are
held in the United States and only one
sixth abroad. Instead of paving to for.
eigners $50, 000, 900, we now pay them
only about $4,000, GOO or $15,O0O. GOO ;
year, and the interest on the debt is
Imainly paid to our own citizens. 1t an.
pears from what has been shown that
since the close of the war, since the pan.
&c Of i've years ago, there has been a
great change In the condition of the
debt. The change has been one of i'm.
provement
i 1. The debt has been greatly reduced.
Il 2. The interest TO be paid has been
largely diminished.
s. And it is to be paid at home instead
of abroad.
i TAXATION
The burden of taxation has been re
duced since 1866, the first year after the
4 war, as follows: The taxes In 1865 were