Year: 1870

HOW To DEAL WITH THE NATIONAL DEBT.


The lecture Of Secretary Boutwell,, at Lincoln
Hall, last night, was an able effort, worthy hi
reputation as a scholar and statesman, and Il
was listened to with interest by large and in
tellectual audience, comprising many who have
achieved distinction in the various walks Of life
His subject was " The Progress of American
Independence" He commenced by an able re-
view Of the leading facts and events that oc-
Cured previous to the Revolutionary war
showing the growth and power OF the spirit OF
Independence; its development and achieve
establishment OF the Republic The subsequent
advance of the principles Of liberty, and wlIa;
tie late civil war accomplished for freedom


were treated of at length; and coming down q
the discussion of what yet remains to be done
that the nation may be independent in all il.
relations; In fact, as well as form; he spoke OF
the Importance of financial indep. ndence, ana
undtr this head treated the question of how "a
deal with the national debt, saying:


Our condition at the present time is pecu-
liar. The revenue IL large, and after the pay
mtnt Of ordinary expenses, pensions, and
interest, We have a surplus of one hundred mil
lions annually for the reduction of the principal
OF the debt. The Treasury is free from embar-
BASEMENT, and we have no occasion to borrow a
dollar for any purpose whatsoever Provision
can be easily made for the payment of the ten
forty bonds, amounting to Sl94 900 900, in 1874


when they will be first redeemable, or they NAV
be postponed for thirty years more, as the public
" - W.
600, due in 1881, can be paid at maturity. For
the present We are at ease in financial affairs.
The proposition for new loan has one purpose.
and one only-the reduction of the Interest
account; and if this cannot be accomplished,
We have no occasion TO intrude upon the
markets Of the world. Our power to
place q new loan at a reduced rate of
interest is, In my judgment, wholly dependent
upon the magnitude of our surplus revenues.
Nothing but the menace of payment will induce
the holders of six per cent bonds to surrender
them and accept bond bearing lower rate OF
interest. IL We reduce the revenue so that il is
barely adequate to meet necessary expenses and
the accruing interest, the holders of fve-twenty
bonds will resolutely resstevery effort to induce
interest account excluding Pacific railway bond.
is Si25, COO. The Government has already
bought $50 900 600 OF its own bonds, the interest
on which is paid TO the Treasurer, leaving our
actual interest at about S120 900 OO0 The reduc-
ton of the interest account, $13 600 900 wear
will enable us If we choose to make this the.
basis Of a sinking fund, to pay the principal OF
even If We should reduce our revenue to tn
necessary expenses Of the Government and the
amount needed TO pay the interest at the present
rate. That is to say, saving of SIS, 600 900 an
nually in the amount of interest will i'm thirty
i've years, with the accommodating interest, be
equal TO the bonded debt Of the United States
Ought there, then, in the presence of such a
possible advantage, be any doubt as to the wis
dem Of maintaining our revenues at high rate
for one or two or even three years if necessary I.


With large revenue for three years, the re-
suit is surely accomplished in one way or the
other. Ii the public accept the lew bonds at
lower rate, the question is settled in favor of the
Government. If they decline the opportunity
the revenues will liquidate the principal Of tn,
debt, and the interest will disappear proportion
ately. In either case the country succeeds. In .
however, we at once reduce the revenues til,
they are sufficient for ordinary expenses pen
siOns and interest on the public debt and tn
public creditors shall consequently refuse to re-


ceive new bond at lower rate OF interest
what will be the condition of the country thirty
five years hence? 1t will have paid "a 2JO OO6 :
COO Of interest upon the public debt, and IN,
entire principal will be then unpaid. Again, i
say 1t Is not sufficient for a nation that it is Do
htically independent of foreign or hostile Pow
eTs 1t is not sufficient that the people are a.
citzens-tbat they are free and equal, or even
that political power is i'm their hands. To ali
these must be added national financial indie
pendence. This America has not; this she can
not have until she diminishes perceptibly hei
public debt, and renders its payment certai,.
within generation. j dare not cite examples
but 'he nations are many that are crippled il
their Iohcy and retarded i'm the development oi
their industries by the magnitude of their debt,


Their example should be a warning to us. %