The National tribune. [volume] (Washington, D.C.) 1877-1917, 1888-01-12
OUR PUBLIC DEBT.


debt.
In the early history of the country, when |
we had a character to establish, we managed |
our debt with an honesty and ability that
extorted the praise of those who hated re-
publican institutions, and wanted to see the
young Nation promptly fail to meet the re-
quirements of independent government.
We began our National life with Ma
tional debt, which had been incurred in the
struggle for Independence. This was made
up of $241, 552, 780 of Continental paper
money, $8,167,O0O borrowed from France,
$355517 borrowed from Spain, $3,600,000
borrowed from Holland, and $186,988 due
the French officers who came over to our
assistance. All these claims were finally
adjusted and consolidated into something
over $100,000,000 The first statement of
the debt was in 1871, when it was reported
at SIS, 463, 476. Other claims were admitted
from year to year, which made the aggregate
about what we have stated. The country
was poor, and laboring under terrible financial
embarrassments, but under the guidance OF
that truly great statesman, Alexander Hamil-
ton, we attacked the incubus of indebted
ness with skill and vigor, and by the time
we entered upon the war of 1912 had re-
duced it to $45,209,737 an achievement in
fnancieringand honest administration which
gave the world confidence in the ability of
the people to govern themselves.
The war of 1912 ran the debt up to $127,
334,933 by 1916. Again our forefathers at
tackled the burden with wisdom and vigor,
and in the short space of 10 years. and in the
| midst of untold financial embarrassments,
virtually wiped the debtout. In 1885 we only
owed $37, 513, and several millions of sur
| plus had been distributed among the States.
This had the happiest effect both at home
and abroad. Europe conceived a great
faith in the frmness and stability Of our
institutions, which found expression in the
most beneficial way, by vast quantities of
foreign capital coming here to seek invest
ment. Our own people took increased con-
fidence in themselves and what they did,
and the development of the country went
forward with a magnificent impetus. In
proportion the growth of the country be-
tween 1916 and 1885 was as marvellous as
between the close of the rebellion and the
present time
But then came other councils, such as now
control the revenue thinkers. A policy SINH
lar to the one they would force upon the
country was adopted. The revenues were
reduced, the tariff cut down to the lowest
points. They did not stop with this, for we
find that they did not leave enough to pro-
vide for the Governments expenses. Though
we were at peace with the world and had no
occasion whatever for extraordinary expen-
ditures, the public debt steadily increased
from year to year, as the following figures
from the annual report of the Secretary Of
the Treasury will show:
Is42................... So, 4sC
4ol Do
1916 ,e2 Box
III, $50 21
Ins1846 the Mexican war began. The re-
port of the Secretary for the year ending
July 1, 1947, shows the debt increased tc
$38,826,5 34 July 1, 1848, it was $47,O44,
862 No serious attempt seems to have beer
made to reduce the Indebtedness, and il
went on growing for the next few years al
follows:
O6l 50
452,
3O4, 10
BY July 1, 1861, it had swelled to $50,
580,873. There was no Justification for this
The development of the country and the dis
coyery of gold in California had added enor
mously to the National income. and bein!
at profound peace, and with no occasion 70
extraordinary expenditures either at hom
) or abroad, the only reason for such an in
crease of the Nations debt must have bee
q desire to benefit a certain class by givin
them permanent, safe and lucrative invest
ment for their money at the expense of til
taxpayers Of the Nation. This is clearl
the policy Of those who are fghtin
now to reduce the revenues to poin
which viii prevent the Nations making an
: reduction of its Indebtedness. They wan
: the sweet simplicity of money in Govern
> ments," as an English statesman once e.
pressed it, for their own selfish purpose
We will see this clearly when we examir
the report of the localities where most
= the bonds are held. We shall find that the
are precisely the localities whence com'
the most strident clamor for revenue redu
: ton, and no debt paying. The census
. 1880 showed that 1925 918,15 of the regi
" tered bonds-the total bonded debt now