Stevens County tribune. (Morris, Minn.) 1877-1880, 1878-09-12
ADDRESS OF PRESIDENT HAYES


Fellow citizens Of Minnesota: wish to make
my sincere acknowledgements 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..
Geo. r. Finch; and to those associated with
them, and to the people of this State whom
they represent, for their kind and gem
erous welcome. I know very well that nothing
which can do or say will be fitting and ad-
equate return for your kindness. But ear
nestlv desire to say some things touching the
material interests of the country, which will
tend at least to encourage those who need en-
couragement and to 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 coun-
try. Since the financial panic and collapse
tive 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 hard times. In such
times men naturally ask, what can be done?
How longis this stagnation of business to last?
Are there any facts which indicate an early
return to better times? / wish to ask your
attention for few minutes while present
some facts and figures which show a progress
sive Improvement in the financial condition of
the general government. 1t will be for you
to consider what differences may fairly be
drawn as to their bearing ON the question of a
revival of business prosperity throughout the
country.
The financial condition of the government of
the United States is shown by its debt, its re-
ceipts and expenditures, the currency and the
state of trade with foreign countries.
Let us consider the state of the public
debt.
The ascertained debt reached its highest
point soon after the close of the war, in Aug.
1865 and amounted to 81, ISL, 639, 57I.43. In
addition to this it was estimated that there
were enough unadiusted claims against the
government, of unquestioned validity, to swell
the total debt to SO, 600, 0O0,000. 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 remem bered 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 d BIT
would be like that of Englsnd-permanent
and a burden upon ourselves and our posterity
for all time. Some advocated and many feared
reputation. There were those also who
thought that national debt was q national
blessing. Fortunately, however, the eminent
gentleman at the head of the treasury, Mr..
Hugh McCulloch, did not hold these views. He
was not blessing, but a burden, and that
it ought to be ard could be honestly paid. The
policy adopted was to reduce the debt and
thereby strengthen thu 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
81, OBS, $50, 324.S5. This is a reduction as COM
pared with the ascertained debt thirteen years
ago, of $722, Los. 2465S. More than one-tourth
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 $S, 0OJ, OO0, 00O-the reduction amounts to
about 81 OOO, OO0, 900, or One-third of the total
debt. Thus it is demonstrated that the United
States can and will pay the national debt.
Encouraging as are these facts, they do not
fully show the progress made in relieving the
country from the burden of it's war debt. All
who have to borrow money to carry debts know
the importance of the question of interest.
The total amount of Understanding debt at
the time it reached its highest point, the Slst
of August, 1866, was a. follows:
per cent. bonds. ..a.........$ 618,127 90
per cent. bonds ................. 269.I75,727 65
per cent bonds -. .......... LOG, III 279 So
$40 United States notes. .... SS0,O0OOOO 90
Compound interest notes, per cent 27,U24, 100 90
Total interest-b bearing debt. 2,ssl $50. 20. 9s
The total annual interest charge
announced TO- g 15O,yI7,GS1 81
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 Uni
on. With such burden for interest, it is not
strange that many believed that the debt could
never be paid. but, as we have seen, q 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 Co its letter
and spirit were demonstrated. It was seen
that the successful management of the debt
depended on the rates of interest to be paid;
that reduction of one per cent. on our whole
Understanding debt would be yearly saving
in interest of over twenty millions Of dollars.
That reduction of two per cent. in the
rate of interest would save to the country over
90, Loco, 900, which is the interest at four ptr
cent. on thousand million dollars.
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 interest bearing debt,
August I, 1873, was "A follows:
per cent. Navypension fund. 1l,000000
Per cent. ponds ...,....-.s... ll2sh0fn0
~ peE Ceuts.s 1SosNNisHhs
per CENTS. luas sh0V
por cenus. tJSyOoAzoV