Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-06
Barn, Aug. I. 1879.
j. W. W tKrFIrLp


Barn. Aug. I, 1879.
b. +. Lancaster. Esq:
SIR: did not have the pleasure of lis
tening to your speech, delivered in this citv
few evenings since. but am crcdiblv informed
that you stated that whilst Secretary
sherman and others were claiming a rcduc
ton of over sixty-seven millions of dollars
in the annual interest on the public debt.
you desired to call the attention Of your au-
diencc to a sr0ra report of Secretary Shcr-
men. made in 1873, in which report the See.
rotary had reported that the annual interest
for 1865 was So, 3d. 900 30. and for ISIS
5l02, 800, S1i6a, showing an actual increase
Of annual interest Of over twenty five millions
of dollars on the public debt, between the
years 1865 and 1878"
In order that your statement might have
more force and perhaps the desired effect
you declared that the statement was not your
own, but that of Secretary Sherman, and
kindly invited your hearers to come forward
and examine the Sccretary's own statement.
knowing thatthc statement of an increase
of interest was erroneous, and as | could not
believe that you had Intentionally deceived
your audience, have had the curiosity to ex-
anime Secretary Sherman's report for 1878
and have done 81 in so careful manner a,
to enable me to show conclusivcly that your
statement was made, either from u want of
proper information, or for the purpose OF
deceiving the public. sincerely hope it
was the former.
am well aware that for the past two years
you have closely applied yourself to a study
of the finances of this and other countries.
still think it would be very unreasonable L.
assume that you are as well vcrsed on th>
subject as Secretary Sherman, ,cho has had
4
Secretary of the Treasury have been crowned
with a success such no other nation has
ever achieved; therefore his statement i.9usf
and piU he accepted as HUe. that there has
been reduction in the annual interest on the
public debt of over siyty-scven millions of
dollars, until some good authority can dis
prove it,
In compliance with the law, Secretary
Sherman made his annual report (not a siroyn
statement as yoH sfated) for the fiscal year
ending June Both 1873. to the Speaker OF
the House Of Representatives, under date OF
December 2nd, 1878. In that report he makes
no reference to any financial transactions OF
any year other than the fiscal year 1873, no
reference to amount of the national debt or
amount of interest on the same. but accom-
panying the report were numerous tables and
reports of the various Bureaus and Divisions
of the Treasury Department. among which |
find table e., pages IL and II. giving the ex-
pendtures of the United States, in the war
navy Indian, pension, interest and other de-
partments, from March 18th, 1889, TO June Both
1878. In this table find no reference what
ever to the amount of interest the Govern
ment was paving on its Indebtedness. simply
a statement of the amount which had been
expended on account of interest to June Both
1865.
Had you desire to treat the matter fairly
why did you not refer your hearers to table
E., of the same report, giving n statement of
the outstanding principal of the public debt
of the United States, which table shows the
debt in 1865 to have been about two billion
seven hundred millions of dollars. the very
larger proportion Of which, every Intelligent
citizen knows to have been an interest bear
ing debt! Possibly this was omitted from the
fact that YOU well knew il would refite the
statement YOU had made in regard to the in
terest.
If You had any desire to treat the subject
fairly, why, when YOU quoted from Shcrmans
report, the interest for 1878 as over one hun
dred and two millions of dollars. did YOU not
tell YOUR hearers that Secretary Sherman in
that same report, page 18th says, ''that
the interest on the public debt has
increased" and explained that it twas
due to .the large balance of 81. 426 6l9. 81 un-
pald interest at the commencement of the
year. and to the change from semi-annual TO
quarterly payments of interest on six per
cent. bonds converted into four per cents
which would not otherwise have been made
until after the close of the year." therefore
the interest for 1873 was but sol ,G54 472 so
But to have done so would have readily
convinced your hearers that table g., which
you quoted had no reference to the indebted
ness of the government on interest account.
desire to call your attention to the issue
of the : j. 10 bonds. which issue amounted to
$3.50, 600, 000 the very larger proportion of
which were issued March 3rd. 1863 md the
coupons PAYABLE July 18th, 1850, and January
18th, 1866. On this large issue Of bonds.
but one coupon ON very small proportion
of them was due prior To June 30 1865,
therefore the very large amount of interest
on these bonds. not maturing until after June
Both, 1863, could not possibly have appeared
in table e., from which you quoted
The interest on this issue of bonds ut $40
per cent. amounts to $50, $50 900. 90 which j.
entirely too large an amount to lose sight of.
even in these days of extravaganza. The
coupons on large proportion of these bonds
maturing July 18th, 1865, aud January 18th,
1866, could not possibly be put into the ac-
counts of the fiscal year, June 30th, 1865,
therefore this interest must be added to the
amount which you admitted was paid.
MIR. Lancaster, you well aware that
there were little rising two hundred mil
lions of eompound interest notes issued in