Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-09-18

ify to cre9te debts except In case OF war. fnsur-
Iecthn, or other extraordinary emergency.
tDGer the opei alton or these prohibitory pro-
visions, the debts existing at the time of their
adoption have been greatly reduced, and the
only states now embarrassed by debt are those
whose constitutions do not contain this wise
prohibition.
The general policy OF the national govern
ment on the subject Of debt has always been
sound. Ii may be summed up In a few words
No debts to be created in time OF peace. aud
war debts to be paid on as rapidly as possible
when the war ends.
The revolutionary-war debt, at the Inaugural
tion Of the present form OF government, March
4, I7s9. amounted to s76,OOo,Oo0, and after sue
ceSsive refuIdDgS, I'm long time bonds, vas
paid off by their redemption, finally, In 1895.
The debt created by the war OF 1912, after re-
funding in AZ per cent bonds was also paid In
1885, and at the close OF that year the nation
was practically free from debt.
The debt incurred on account Of the Mexican
war amounted % $S3 552,6 SOS, the bonded debt
bearing six per cent. interest, running from five
to twenty years, and TIeasury notes at various
rates OF interest, from one mill TO five and two
nfths per cent. All OF this debt was redeemed
prior to 1870, excepting very small amount
not yet presented for redemption.
Our war debt resulting from the war for the
union amounted to about g, ,000, ,OO0. .O0O and IS
been reduced to about ST., %, 600 900. During
the last year there has been no reduction OF
the aggregate amount, but there has been a
ing debt OF $13 800, and the rates OF interest
have been so reduced by refunding within the
past year that there is an annual saving OF
$13, .60 900 In interest. The annual interest on
the national debt reached its highest point
about fourteen years ago, when It was $780,
977 697s7. 1t is now reduced to $50, IA 40 80,
yearly saving OF SCI, ,232, 1913 or about As per
cent. OF what was payable In 1865. The policy
OF paying OF the national debt, which, at the
close OF the war, was urged upon the country
with SO much force by the Secretary OF the
Treasury, Mr.. Hugh McCulloch, has borne good
fruit. Young men OF this audience can remem-
ber when the government OF the United States
found great difficulty In borrowing so small a
sum as S25,000,OO0, and for q considerable part
of it was compelled to pay as high as I2 per
cent. Last spring, cy reason OF improved and
strengthened credit, the government had no
trouble IN borrowing, In the single month OF
April, 1925, COO, ,000 at per cent. interest. The
amount offered In that month exceeded $780,
G00,000, and there was one day when the amount
offered was $159, 100000.
Let the policy Of extinguishing the national
debt be adhered to. ' It Il be the fixed purpose
OF the people and all NO administer the gov
erDment to pay off the debt within thirty three
years. 1t can be done by economy and pru-
dence without material increase Of the bur-
dens OF the people. The payment OF thirty
three millions year upon the principal of the
debt. or into sinking fund for that purpose,
Will, within thirty three years, leave us free
from debt as nation.
That which Is sound policy in national and
state affairs, In regard to public debts, he be-
lieyed also to be wise policy In local affairs and
In private affairs. Let it be everywhere adopt
ed, in public and private, and we may welcome
the advancing tide OF better times, confident
that we have found the secret that VIII prolong
their stay, and which will go far to make us in
dependent In that, he trusted, distant day when
q financial panic may again strike down the
general DTOSpertty.