The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-09-19
THE NATIONAL FINANCES.
A CLEAR NEUTRALITY-SUSPICIOUS. FRo1
ppEcTnENr JJAVES

THE NATIONAL FINANCES.
A CLEAR sTATEMENT-sPEECH FRo1
PRESIDENT HAYES.
On Thursday last the President was re
ceived with great enthusiasm and by yer.
large concourse Of people at st. Paul, Min
nesota. The occasion that called him to tn
northwest was the Agricultural Exhibition
of the State of Minnesota. He was met a
The depot by committee of distinguished
gentlemen, headed by the Governor Of TIN
State. When he stepped to the front on thu
platform, and was introduced to the audi
ence by ex- Governor Sibley, he delivered
the following speech:
Fellow citizens of Minnesota-I wish t
make my sincere Acknowledgements 10 thu
Governor of Minnesota, Governor Pillsbury
to the Mayor of St. Paul, May or Dawson, t.
the President OF the Minnesota State Agricul
tural Society, Mr.. George French, and tt
those associated with them, and to tho peo-
pie of this State, whom they represent, fol
their kind and generous welcome. l know
very well that nothing which can do or say
will be fitting and adequate return fol
your kindness, but honestly desire to say
something touching the material interest Of
the country, which will tend at least to en-
courage those who need encouragement, and
to give increased hope to those who are al
ready hopeful. The most interesting ques-
lions in public affairs which now engage the
attention Of the people Of the United States
are those which relate to the financial con-
dition 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 natural
ly 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 present some facts
and figures which show progressive i'm
provement 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 re-
vival of business prosperity throughout the
country. rla aI
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 highest point soon after the close of the
war, in August, 1865, and amounted to 3d.
757 ,639, ST. .43. In addition to this it was
estimated that there was enough unadjusted
claims against the Government OF unqUes-
toned validity to swell the total debt to 49,
000, 100000. 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
speeches and In the public press the opin-
ion was confidently declared that the debt
could never be paid that great nations new
er did pay their war debts that our war
debt would be like that Of Eng.and-perma-
nent, and burden upon ourselves and our
for all time. Some advocated and
many feared reputation. There were those,
also, who thought national debt was a ma
tional blessing. Fortunately, however, the
eminf nj gentleman at the head OF the Treas
ury, Mr.. Hugh McCulloch, did not hold
these views. He believed and the people
believed that the debt was not a blessing,
but burden, and it ought to be and
could be honestly paid. The policy
adopted was to reduce the debt and thereby
strengthen che 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 50, OBS, $780,
324.S5. This is a reduction as compared
with the ascertained debt thirteen years ago
Of 1922, los, 246.5S. More than onc-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 1000, 900, 900, the reduce
lion amounts to about 81, 900, 600, 900, or one
third of the total debt. Thus it has been
that the United States can and
will pay the national debt. Encouraging as
these facts are, they do not fully show the
progress made in relieving the country from
5he burden OF its war debt. All who have to
borrow money to carry debts know the inn
portance of the question OF interest. The
total amount of interest bearing debt at the
line it reached its highest point, the 31st of
August, 1865, was as follows:
Four per cent. bonds. 6l8,127 90
Five per cent bonds ............. S69, I!b1za %
Six per cent. bonds. l064,712,279 IS
80 United States notes. 830,0OO,G00 w
notes, per %
CENT. Slf,uz4,lou w
Total interest bearing debt =. 81 1881, 53oss4 96
The total annual interest charge amount
ID to $3.50, 977, 697.S4. This was an oppres-
live 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
hat many believed that the debt could never
De paid but, as we have seen better opin-
on prevailed. Those who believed that by
strengthening the national credit the rates
If interest might be reduced, were sustained
oy the public judgment. The ability and
he purpose to pay the debt according to its
etter and spirit were demonstrated. 1t was
seen that the successful mana cement of the
lebt depended on the rates of interest to be
paid that reduction Of one per cent. on
our whole Understanding debt would be a
yearly saving Of interest OF over SIC, 900, 900
that reduction Of two per cent. in the rate
IF interest would save to the country over
$40, 100000, which is the interest at per
cent. on 81, 00O, 00O, 0CO. sse
The policy of reducing the debt, and there
by 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 /, 1878, was as follows
Three per cent. navy pension fund.-. 14.0000 900
Four per cent bonds is.S So0 0oo
Four and half per cents. 246,000 700
Five per cents. $3.50
SIX per cents..... ........ 7o5'oolzoo
Total present interest bearing debt 81 800 800
the interest on which amounts to the sum of $685.
l8l,O07 30 per annnm. 81
1t thus appears that in thirteen years the
interest bearing debt has been reduced from
81, 1881, $50, 296. SO to 81, So 677, $780, gain in
the amount of the Understanding debt Of
$571, 852, 394.96. The reduction Of the an
nual interest charge is $55, 795, 690.34 or more
than so per cent. of what we now pay. If
the reduction OF annual interest were placed
in a 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. 1t
is estimated that in 1871 from $S8, 000,0 900 to
81 200, 000, 900 were held abroad. We then
paid from $50, 0c0, 900 to a60, 900, 900 annual
ly 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