, 1881-01-30
q Review Of: the Financial po);cv >.
the Government from It's
u? 4ouA0at10u.
Internal, Revenue Receipts Of Thrp.
Months Now More than the Re1.
- olutionary Debt.
The Issue Of Threa.and-a-Ha1f H.
Cent Short Bond Recon-
mended.
Prediction that The End Of The Ne1t Dead. nm
.s'' Tie Debt Reduced to sl,eoo,.
QUO, coo.

l. W0, GVD
| .BosroS, JAN. n..299.-Secretary Sherman ~,
entertained this evening at q dtnnes gf7an
py the Merchants Club Of this city, and: n
response to an invitation, delivered ~, 80 y
dress touching upon the refundine onara
tions pf the Government and the mdn,sa-
ment of the public debt The Secrpter,
opened with review OF the financial ags,.,
Of the Government, ut the close Of Revon'
tionary War, and Of the necessity that thu,
existed for refunaing the debt at that nerioa
for tile purpose Ut securing lower rote ~
Interest and extending the period of its .uavs
ment, and illustrated BY contrast betTean
t tbs amounts involved In the refunlin1 onar..
tions of That period ard thoseo of recenttjmaa
! Speaklng Ut the progress made in -
/, THE CouSTRY's GROWTH ::
| the Secretary said TINT the revenues no,0 ~
celved for three months amounted to mora
than, all the debt Of the Revolution. The r.
sumption Fund now held tn protect the ~.
demption OF, United States notes is mora than
double the amount Of the Reyolutfonarv
debts. ! had occasion recently to ,look Inn
the beginning of the financial operations ~
the. National Government, and found Ii.
first entry dated Sept. 10, 1779. In day-book
! No. l WAS that Of draft upon the Bank of
New York Of $4,000 for the credit Of Samnpl
Meredith, Treasurer of the United States
being part OF a loan agreed to be made by
that bank to Alexander Hamilton, Sectetary
Of the Treasury, and this was -. -.
TIE FIRST MONEY RECEIVED N THE TREAS.
URE, OF THE UNITED STATES
It was followed by similar transactions to
the amount Of $4,000 during September
and October, and was used mainly for tie
payment ofmembers Of Congress-. This loan
was reimbursed out Of the first revenues Of
the new Government. The whole expend.
iture for the first year Of the Government
was about equal to two days receipts Of tbs
Treasury, ,at the present time. Following hs
fllaneial operations of the Government
thence to the Administration OF Gen. jack.
son. wien the National debt was paid Of In
full, the Secretary stated that from that time
TIE BEGINNING OF THE CIVIL WAR.
including the period OF the Mexican War,
the debt Of the United States ranged from
minimum Of $4,000 to q maximum Of
.sBs, ,o0o, coo. lis apparent that In MI tue
money transactions ot the Government prior
to the Civil War certain general principles
were followed. chief Of which was, that tbs
debt was to be- considered .as a TEMPORARY
burden, tn be nafd as rapidly is possible. In
this respect our; financial policy has differed
from European: countries. Ne hare always
made Provision for the gradual payment Of
our debt, and they do not. Another principle
upon which We'haye acted, IS That !: -: ;.
.. : frTfts i,rypY RI crr1YTrrr.Yr+a -
shall run but for short period, and that the
right OF redemption shall always be retained
Us far as practicable. This right Of redemp
lion has not in any case been placed beyond
The average life of a, single generation. and
.his, principle is more tenacfously alheledto
In the popular branch Of Congress than auI
'ther III respect to our debt. Another prfn-
,ipfe formerly field BY us is, that whenever
he public debt Is contracted sinking fund
,r tax should be set aside for its gradual
iquidat16n. Another principle OF, cur fnan-
'lal policy is that not on1y shall the prloer
pal Of .--,'
THE DEBT BE GRADUALLY Paid,
'ut every suitable occasion be taken to ~
luce the Interest thereon, and thus lessen is
'urden. But more than Ml, the unftedStates
'as always firmly, and fully. and HONESTY
reformed every promise made to puo1c
reditors. These principles were. inhs1'seo
y us. When civil car came upon as andoom-
eAed- the contracting Of a debt in: smoans
0 vast that one years interest was morsthsn
lie debt caused by the Wars Of the RaToln"
ion and of 1872, attention was devoted to n1s
apid payment Of the public debt and tba
'undlng. act OF .1670. At that time 1egatten-
er notes were the unliquidated, dlshonorea
ro1nises Of the Government worth less than
ar in coin, and no man can say what was
go THE EXTENT oF*THE EVIL: ~:
t this single fact upon our credit during 1ae
rst fifteen years after the War:At u
vents, though the Funding act gate the w.
etary of the Treasury ample power to sen
onds bearing s per cent Interest, Eeth Hss >
x years after the passage Of the law befo1e
9 was able to sell S5oo, boz. 900 Of this clfss@
,curities. When they were exhausted
as long and slow process to establish u
10 market the ~ per cent bonds. III WIS
Ut until after the passage OF the Resamp
On act, and the plain, dednit policy 70 O.
rec that act was announced by the E1eoE
ve branch Of the Government, and amps
:ovision made to redeem our legaEtenoen
l demand, according to law, that ~
WEHE ABLE 70 SELL PER CENT BONE
. AT.PAR- :'- S.stxt
During 1s77 they were first offered. ~
'tes were rapidly advancing to par anat.
9 effect Of the measures adopted. unoet%
e Resumption act we were able to seA au1:
2 that year S77,0oo,00o But when It ~
AIRED that Congress was. not prepared
stain the policy Of redemption tue W
: these bonds at once ceased, as VIM
amp. When It was manifest Congn
0uld not repea1 the Resumption act w.,
ere again sofd, but it was not until at.si
G 1st Of January, 1873, when. the gn!Itp. e.
ates. WAS fully prepared to redeem - =:
ties at par, that tbs credit OF the H9
nment became so firmly advanced q neaT w
d abroad that In four months s5s., ,o1on ~.
ere sold, thus providing for the req1esmp!as.
all and per cent bonds then 'redeen'
:. The policy OF refunding Is not re- na.; /
.te. Two hundred and two million aolta.s ~
6 per cent bonds issued at the be&ihs;ta = ~. ~.
the War are about to mature. aud ~"
LOCO Of per cent bonds. issued undet uso 4e
funding act. will become redeemahla& 49, ~
OF May next, and the ;auestionc Is, ~. ~
1t can ne amply the PRINCIPLES OF our 1o'.: -