Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1878-09-20
PRESIDENT IA TESS SPEECH
At the Ninnesota state Fair, sept. 3th

tlAtAtiOi VI tAAO INblIlJ VI Nllt OulAtN DNtlNh
are those which relate to the financial condi-
ton of the country. Since the financial pan
ic 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 rs
"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 caly return to better
times l wish to ask your attention for a
few minutes, while l present some facts and
figures which show progressive improve
ment in the financial condition of the general
government 1t will be for you to consider
what inference may be fairly drawn as to
their bearing on the question OF II revival of
business prosperity throughout the country.
THE PUBLIC Debt
The financial condition of the government
Of the United States is shown by its debt its
receipts and expenditures 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, 1855, and amounted to -, 7j7, GS9,-
81. In addition to this. it was estimated
that there were enough uuadjusted claims
aguinst the government Of mqucstioncd val
ility to swell the total debt to 5000 millions.
How to deal with this great burden was one
of the gravest questions which pressed for de
cision, us a result of the war. II will be re-
membered 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 ike that Of
England permanent, and q burden upon our.
selves and our postority for all time. Some
! advocated and many feared reputation. There
were those also who thought national debt
was national blessing. Fortunately. how
ever, the eminent gentleman at the head Of
the treasury, MIR Hugh McCuiloch, did not
hold thosc views. He believed, and the pco-
pie believed that the debt was not "a blessing,
bat burden, and that it ought to bc, aud
could he honestly paid. The policy adopted
WAS to reduce the deUt, and thereby strength
en- the public credit, 50 rs 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 -, O3j, ,5S032l. Tins is a
reduction, rs compared with the ascertaiued
debt - years ago, Of S722, 900, ,2lG. More
than ono-fourth OF the debt las been paid of
| in IL years. If We compare the present debt
with the actual debt 10 years ago, placing the
actual debt at 5000 millions, the reduction
| ambuuts to about 1880 millions or one-third
the total d,bt Thus it has been dtmonstIut-
| ed 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 its war debt. All
| who have TO borrow money to carry debts
! know the importance of the question of inter-
/ est. The total amount of the interest bearing
| d, Ut at the time il reached its highest point
the 3lst Of August 1861, was as follows :
! -Four per cent bonds, $GlS l27; > per cent
bonds S2G9, l7j, 727 per cent bonds, ST.
| 0Gf, f,7l2, 279; $40 United States notes
| $3.50, eco, 600 compound interest notes, &
| per cent, S217,O2i, 100; the total interest
| bearing debt. S23Sl $50, 293. The total an
nual interest charge amounted to $50,
| G91 This was an oppressive burden For
| interest alone We were paying more than
double the total current expenses of the gov
erninent in any year of peace prior to the war
for the Union.
With ,uch burden for interest it is not
strange that many believed that the debt
| could never be paid. But, as We have seeu "a
| better opinion prevailed. Those who believ-
| ed that by strengthening the national credit
| the rates of interest might be reduced were
sustained 10y the public judgment The abi-
| ity and the purpose to pay the debt, accord
| ing TO its letter and spirit were demonstrated
II was seen that the successful management
| of the debt depended on the rates Of intert st
| 70 nc llhlNA, tltl u ltANNlAbn VI per cent On
! orr whole interest bearing debt would be Il
| yearly saving in interest of over 70 mill
! ions that reduction Of > per cent in the
rate of interest would save to the country
| over 10 millions, which is the interest at
! per cent on 1000 millions. The policy of re-
| ducing the debt, and thereby strengthening
the public credit, having been adopted, let us
! observe the result in the present condition Of
| Tho public debt with respect to interest
The total intorest-bearing debt August l,
| 1915 was as follows Three per cent navy
| pension fund, $4,000, coo; per cent bonds
! SIP, $50, 600; 44 per cents S2iG, 600, coo ,
per cents, sos, 2G5, ,G5O 6 per cents, S733,-
! 81 ,25O-total present interest-beariug debt
| -, 500, G77, 800, the interest on which amounts
to the sum of sos, Isl ,OO7 per annum. 1t
| thus appears that in II years the interest
! benring debt has been reduced from =, ,3Sl.
| iaO 29G to 81, 500, ,G71, 900, n gain in the
amount of the interest-bearing debt of SUI, %
| So, 2,394. The reduction of the annual inter
| est charge is 500, 79G, $50, or more than 50
| per cent of what we now pay If the reduc-
| tion of annual interest were placed in sink
! ing fund at per cent interest it would pay
| of the whole debt in less than % years.
The expenditures have been reduced, since
! the close of the war, as follows 1867, eX-
! penditures, including pensions and interest,
| S3j7, jI2. G75; 1S7S do, S23G 9GI 500 re-
duc,ion of expenses, $40. 57S, ,3i9 expendi-
tures the year OF the panic, 1873, 5000 345,-
2I5; 1873, S23G, 9Gi, ,32G reduction in five
| years. Sj3, ,3SO,9lg.
| There has been another gratifying and i'm
| pOrtant Improvement in the state of the pub
| lie debt A few years ago our bonds were
largely owned in foreign countries. 1t is es-
timatcd that in 1871 from 500 millions to 1000
| millions We're held abroad. We then paid
| from 30 to 60 millions annually to Europe for
| interest alone. Now the bonds are mainly
| held in our own country. II is estimated that
| five-sixths of them are held in tine United
| States, and only one-siXth abroad Instead
of paying foreigners 80 millions, we now pay
| them only about - or - millions a year, and
the interest ON the debt is mainly paid to our
| own citizens
| It appears from what has been shown that
since the close of the war, since the panic of
! five years ago, there has been great change
| in the condition of the debt. The change has
| been one of improvement /. The debt has
been greatly reduced. >. The interest to be
| paid has been largely diminished. 3. And
it is 10 be paid at home, instead of abroad.
TAXATION.
The burden of taxation has been reduced
since 1866, the first year after the war, as fol-
lows; The taxes in 1866 We're Customs,
| S179, G5l intemal-revenue, S3O9 22G
sl3-total, S4ss, 273, 4Gi. The taxes in 1878
were Customs, $3.50, 40, ESQ; internal-rev-
enue, S110, 5Sl, ,62i-total, S240, 756, 3O4. Re-
! ducton of taxation since 1866, S247, ,52l, 100.
Taxation the year of the panic, 1879 Gus
toms, SlSs, ,OS9, j22; internal-revenue, $l13,-
729, ,3l4-total, S3Ol, SIS, S36. Taxation in
1878, $40, 752, 3O4. Reduction since the pan
ic, SCI, ,0GG, 532
THE CURRENCY.
The improvement in the currency since the
close of the war has been very great. In 1865
the paper currency of the country consisted
of Greenbacks, Si32, 757, ,GO4 national
| bank notes, SIG, 3l3, 95J fractional curren-
cy, S2G, ,344, 742 old demand notes, $4O2,
$685. treasury notes. compound interest notes
and State bank-notes (estimated), $780, 600, =
OOO-total, S735, 7l9, ,2GG. Its value was 90
1 p,l l., al -, "a. Ia