The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1878-09-12
PRESIDENT HAYES.

PRESIDENT HAYES.
Speech of His Exce1lency at the Minnesota
State Fair-The Financial Status of the
Country Presented, and Verified by In
conference.-the Facts and Figures.
FELLOW CITIZENS OF MINNESOTA: I
know very well that nothing which can do or
say will be a fitting and adequate return for
your kindness, but I earnestly desire to say
something touching the material interests of
the country which will tend at least to encour-
age those who need encouragement and to
give increased hope to those who are already
hopeful.
The most interesting questions in public
affairs which now engage the attention of the
people of the United States are those which re-
late 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 employ
ment. 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 re-
turn to better times I wish to ask your a.
tention for few minutes while present some
facts and figures which show a progressive i'm
provement in the financial condition of the
General Government It will be for you to
consider what differences 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 aud expenditures, the currency, and
the state of trade with foreign countries.
Let us consider the present state of the pub
lie debt
The ascertained debt reached it's highest
point soon after the close of the war, in Au-
gust, 1865, and amounted to 49, 757, 689, 571.43.
In addition to this it was estimated that there
were enough unadjusted claims against the
Government of unquestioned validity to swell
the total debt to $3,000,000,000. How to deal
with this great burden was one of the gravest
questions which pressed for decision as re-
suit 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 debts; that our debt would
be like that of England permanent, and
burden upon ourselves and our posterity for all
time. Some advocated and many feared repu-
diation. There were those also who thought a
national debt was q national blessing. Fort.
unately, however. the eminent gentleman at
the head of the treasury, MIR. 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 interest And now
give you the results.
The debt has been reduced until now it is
only So, OBS, $50, 324.85. This is reduction, as
compared with the ascertained debt thirteen
years ago. of 1922, 109, 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 $3,0OoO 900, 00O-the
reduction amounts to about $1,000, 100000, or
one-third of the total debt. Thus it has been
demonstrated that the United States can and
will pay the national debt.
Encouraging as are these facts, they do not
fully show the progress made in relieving the
country from the burden of the war debt. All
who have to borrow money to carry debts know
the Importance of the question of interest. The
total amount of Understanding debt at the
time it reached it's highest point the 31st of
August, 1865, was as follows:
-Four per cent bonds. ........$ 618127 90
Five per cent bonds. :. 800 IT'S 727 IS
Six per cent. bonds .............1 1904 7l2 279 SO
Seven and three-tenths United
States notes. $4,000, 100000
Compound-lnterest notes, per
cent. OBSERVATION-DISCLOSURES. 1924, 10000
Total Understanding debt So 391 $50 294 as
The total annual interest charge
amounted tO...................S $50, 977, 697 84
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 burden for interest. it is
not strange that many believed that the debt
could never be paid. But, as we have seen. O.
better 1rpvaIInd h0 ho1;
that by strengthening the national credit the
rates of interest might be reduced we're sus-
tanned by the public Judgment.
The ability and the purpose to pay the debt
according to it's letter and spirit were demon
strated. 1t was seen that the successful man
agement of the debt depended on the rates of
interest to be paid that reduction of / per
cent. on our whole interest. bearing debt would
be yearly saving in interest of over 800. OOO.-
600; that a reduction of per cent. in the rate
of interest would save the country over S4O.-
GOO, 900, which is the interest at per cent. on
$1,000, 600, 900.
The policy of reducing the debt ana 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,
August /, 1878, was as follows:
Three per cent. navy pension funds 100000
Four per cent bonds. ...... .... go. liz, $4,000
Four and half per cents ...... 246 100000
Eve Eve per Genus. .................. JOB 266. $50
SIX per cents. ACKNOWLEDGEMENTS. 49,, 561, $50
Total present interest bearing debt 81 800 677 300
The interest ON which amounts to the sum of
1896, 181, 0O750 per annum. It thus appears
that in thirteen years the interest-bearing debt
has been reduced from So. 381 $50, 296. 96 to
81, 8O9, 677, 900, reduction in the amount of
the interest bearing debt of $571, 1852, 1914 Sc.
The reduction of the annual interest charge
is $55, 796, 6e034, 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 twenty-five years.
There has been another gratifying and i'm
portant improvement in the state of the public
debt. A few years ago our bonds were largely
owned in foreign countries. It is estimated
that in 1871 from $500, 900 to ST. ZOO, OO0,-
600 were held abroad. We then paid from
$50, 100000 to $60,O0O,O 900 annually to Europe
for interest alone. Now the bonds are mainly
held in our own country. 1t is estimated that
fve-sixths of them are held in the United
States, and only one-sixth abroad. Instead of
paying to foreigners $50 600, OOO we now pay
them only about $12,0OOO0O to $15 600, 900 a
year, and the interest on the debt is mainly