The daily gazette., 1880-03-12
FIRST EDITION.
SPEECH OF
Hon. FERNANDO WOOD.

UUu,VVO) tWenty-lOur thousand millions
Of dollars. The largest debt-owing ma
tons In the world are France, Great
Britain aud Ireland, the United States,
Russia, Italy, and Austria Hungary.
Great Briiain and Ireland. 8,sss, 'aso
United states, (Feb. l, lSSU)... 2,lSs, lgD,8gI
nussit....... ...................... 1,S76.OUU,0y0
ttuy ...;;;............."....... l,oH. .t37, ,035
Austria. hungary ............. l,734 .BS4 $50
For the purpose OF this discussion il is
not necessary TO state the nature and
chaI acter Of the obligations OF these ma
lions, or to give the history OF their liza
biities. 1t Is gratifying 10 know that
with three tunes the actual wealth and
capacity Of production of either OF them
the Unit. d States stands the third In the
extent Of ils obligations. The debt of
England 10 two centuries old; ours less
than twenty years. The first national
obligation created In England was in
1864 but In about eight years she de-
faulted In meeting the prime pal and IN
terest OF liability 90 email Is fl,321,-
100, and it was not until 1884, twelve
years afterward, that the inteI est was
paid. In 1899 an at was passed by Par
iiament funding the principal Of this
sum into three per cents, anu IL Il is 4
angular iact that this was tre beginning
VI the present national debt, and remains
portion Of IL to this day.
Every reign from Charles III down has
added 10 IL until that of the present
sovereign. The total debt In 1859, twenty
years ago. was $4,O45,5ll,4lO. In 1878
Ii was $3, ,SSS, ,907.sS0. Like other ma
tions, wars have produced her public
debt. The wars with other nations Of
Europe in the middle Of the eighteenth
century raised her Gebt fiom f5l ,002, ,23S
to fISo, ,S0s ,450. The war of the Amer
lean revolution cost her fI2l, ,267, 7,903 /;
the war with Napoleon cost her f6OI,-
OO,343, and the Crimean was about
flUO, 100, 900. In times Of peace she has
Invariably slightly decreased her debt.
These heavy obligations have, however,
been made light Ia consequences Of the
low rate Of Interest they tore. Her good
faith and abundant resources have kept
her credit unimpaiIed. But 10 neither
of these regards Is she our superior. We
have not defaulLed upon our national
obligations, but have met them in the
most trying emergencies promptly and
easily. The people have endured the
necessary taxation by which this has
been accomplished.
The financial policy OF England has
beyond question been q wise one. She
has been conservative and honest In the
management of her debts, and, with the
xcepLiOn OF the single instance cited,
which occurred over Two hundred years
ago, at the beginning Of the funding
operations. and before any well-ssttled
policy had been adopted, she has been
prompt aud reliable in meeting every
obligation On the day Of its maturity.
The interest upon her debt has rarely
been over per cent, and, although she
has never made large reduction Of Its
volume, her credit has stood the first In
Europe. 1t Is evident that the United
States has far greater resources TO meet
its obligations than Great Britain or any
other nation. She stands even now, IN
the beginning Of her national existence,
as the creditor nation Of the world. Ali
that Is necessary 70 maintain supremacy
Is wisdom, caution, and good faith. Why
should she invite distrast by submitting
auy longer TO rate of interest so much
higher than that OF England? ~.
And pertinent and prominent con-
slderation arises, the question why we
should not reduce taxation by making
an effort to reduce the cost of carrying
so large an obligation to something like
that of England. To show more clear
ly tie differences between cur policy and
that Of England with reference TO the
interest charge upon the public debt, l
refer 10 the following facts; Eugland
with total debt in 1878 of So, ,9SS,907,-
800 has only the interest charge of per
cent, (see Whitaker's Almanac Tor 1879,
page 1lS,) while the interest-bearing
debt of the United States In the same
year was only $1,7S0, ,725, $50, Comp
troller Of Currency's Report 1870, page
l2,) and yet the interest charge was
$lO2, 800, ,S7465, or about an average of
| 81 per cent. (Secfetsry OF Treasury's
Report for 1879 which was increased
in 1870 to l05,327, $40 (Secretary of
Treasury Report lS79) on an increased
debt Of 81, ,SS7, ,7l6,ll0. Comptroller
Currency's Report 1879.
Comment upon theee suggestive facts
is quite unnecessary. They speak for
themselves. 1t is our duty to relieve
the people of such an enormous aud I'M
aeeessAiy load at the earliest practical
ole moment. In my Judgment that tyne
has actually arrived, and 1t will be
criminal dereliction Of duty and not to
| avail ourselves Of 1t.
THE PUBLIC DEBT.
The debt ofthe United States is Of
recent origin, and was of very sudden
creation. Before the late civil war il
may be, said that we were without q
dent OF sufficient magnitude TO be wor-
thy OF tile name OF tina ional bt" In
the general meaning of The term. In
1916 it was at Its minimum-it was al
most nothing. The war with Mexico,
IN 1S46, caused It's commencement In
JANUARY, 1851, 1t had reached only $6o,-
243,7z1. But At the beginning Of the
war in thai year II increased at the'rate
Of alb, ut four millions . month, reach
ing In July, 1861, $o0,6sO, ,S78. In 1862
it Increased more than thiIty-six mil
lions per month, reaching at the close
Of the fiscal year, july !, 1851, to the
sum of 1924, ,l76,413. Duribg the next
fiscal year 1t was more titan doubled
being on July l, 1852, $l,1l9,772, 1873.
At the same period in 1854 1t was ST.
Sl5, ,784.370; from that time until the
close OF the war in April, 1856, 1t in.
creased az the rate OF about two milliOns
day, ami for the succeeding five
months, the increase was about three
millions day until II reached Its max
mum, August 81, 1855, OF $2,s4b, ,907,-
e26. " !.
l,ns n will ha saan that ,t,. ,.o-