642 



PUBLIC DOCUMENTS. 



increase of expenditure since the beginning of the 

 Government has "been eight thousand six hundred 

 and eighteen per centum, while the increase of the 

 population for the same period was only eight hun- 

 dred and sixty-eight per centum. Again : the ex- 

 penses of the Government in 1860, the year of peace 

 immediately preceding the war, were only sixty-three 

 millions ; while in 1869, the year of peace three years 

 after the war, it is estimated they will be three hun- 

 dred and seventy-two millions an increase of four 

 hundred and eighty-nine per centum, while the in- 

 crease of population was only twenty-one per centum 

 for the same period. 



These statistics further show that in 1791 the annual 

 national expenses, compared with the population, 

 were little more than one dollar per capita, and in 

 1860 but two dollars per capita, while in 1869 they 

 will reach the extravagant sum of nine dollars and 

 seventy-eight cents per capita. 



It will be observed that all of these statements 

 refer to and exhibit the disbursements of peace 

 periods. It may, therefore, be of interest to compare 

 the expenditures of the three war periods the war 

 with Great Britain, the Mexican war, and the war of 

 the rebellion. 



In 1814 the annual expenses incident to the war of 

 1812 reached their highest amount about $31.000,000 

 while our population slightly exceeded eight mill- 

 ions ; showing an expenditure of only three dollars 

 and eighty cents per capita. In 1847 the expen- 

 ditures growing out of the war with Mexico reached 

 $55.000,000, and the population about twenty-one 

 millions ; giving only two dollars and sixty cents per 

 capita for the war expenses of that year. In 1865 the 

 expenditure called for by the rebellion reached the 

 vast amount of $1,290,000,000, which, compared with 

 a population of thirty-four millions, gives thirty-eight 

 dollars and twenty cents per capita. 



From the fourth day of March, 1789. to the thir- 

 tieth of June, 1861, the entire expenditures of the 

 Government were seventeen hundred millions of dol- 

 lars. During that period we were engaged in war 

 with Great Britain and Mexico, and were involved in 

 hostilities with powerful Indian tribes; Louisiana 

 was purchased from France at a cost of fifteen mill- 

 ions of dollars ; Florida was ceded to us by Spain for 

 five millions ; California was acquired from Mexico 

 for fifteen millions ; and the Territory of New Mex- 

 ico was obtained from Texas for the sum of ten mill- 

 ions. Early in 1861 the war of the rebellion com- 

 menced, and from the first of July of that year to 

 the thirtieth of June, 1865, the public expendi- 

 tures reached the enormous aggregate of thirty-three 

 hundred millions. Three years of peace have inter- 

 vened, and during that time the disbursements of the 

 Government have successively been five hundred and 

 twenty millions, three hundred and forty-six mill- 

 ions, and three hundred and ninety-three millions. 

 Adding to these amounts three hundred and seventy- 

 two millions, estimated as necessary for the fiscal 

 year ending the thirtieth of June, 1869, we obtain a 

 total expenditure of sixteen hundred millions of dol- 

 lars during the four years immediately succeeding 

 the war, or nearly as much as was expended during 

 the seventy-two years that preceded the rebellion, 

 and embraced the extraordinary expenditures already 

 named. 



These startling facts clearly illustrate the necessity 

 of retrenchment in all branches of the public service. 

 Abuses which were tolerated during the war for the 

 preservation of the nation will not be endured by the 

 people, now that profound peace prevails. The re- 

 xjeip^ts from internal revenues and customs have, 

 during the past three years, gradually diminished, 

 and the continuance of useless and extravagant expen- 

 ditures will involve us in national bankruptcy, or else 

 make inevitable an increase of taxes, already too oner- 

 pus, and in many respects obnoxious on account of their 

 inquisitorial character. One hundred millions annu- 

 ally are expended for the military force, a large portion 



of which is employed in the execution of laws both 

 unnecessary and unconstitutional ; one hundred and 

 fifty millions are required each year to pay the interest 

 on the public debt ; an army of tax-gatherers im- 

 poverishes the nation ; and public agents, placed by 

 Congress beyond the control of the Executive, divert 

 from their legitimate purposes large sums of money 

 which they collect from the people in the name of the 

 Government. Judicious legislation and prudent econ- 

 omy can alone remedy defects and avert evils which, 

 if suffered to exist, cannot fail to dimmish confidence 

 in the public councils, and weaken the attachment 

 and respect of the people toward their political in- 

 stitutions. Without proper care, the small balance 

 which it is estimated will remain in the Treasury at 

 the close of the present fiscal year will not be real- 

 ized, and additional millions be added to a debt which 

 is now enumerated by billions. 



It is shown by the able and comprehensive report 

 of the Secretary of the Treasury, that the receipts 

 for the fiscal year ending June 30, 1868, were $405- 

 638,083, and that the expenditures for the same period 

 were $377,340,284, leaving in the Treasury a surplus 

 of $28,297,798. It is estimated that the receipts 

 during the present fiscal year ending June 30, 1869, will 

 be $341,392,868, and the expenditures $336,152.470, 

 showing a small balance of $5,240,398 in favor of the 

 Government. For the fiscal year ending June 30, 

 1870, it is estimated that the receipts will amount to 

 $327,000,000, and the expenditures to $303,000,000, 

 leaving an estimated surplus of $24,000,000. 



It becomes proper in this connection to make a 

 brief reference to our public indebtedness, which has 

 accumulated with such alarming rapidity and assumed 

 such colossal proportions. 



In 1789, when the Government commenced opera- 

 tions under the Federal Constitution, it was burdened 

 with an indebtedness of $75,000,000, created during 

 the war of the Eevolution. This amount had been 

 reduced to $45,000,000, when, in 1812, war was de- 

 clared against Great Britain. The three years' strug- 

 gle that" followed largely increased the national obli- 

 gations, and in 1816 they had attained the sum of 

 $127,000,000. Wise and economical legislation, how- 

 ever, enabled the Government to pay the entire 

 amount within a period of twenty years, and the ex- 

 tinguishment of the national debt filled the land with 

 rejoicing, and was one of the greatest events of Pres- 

 ident Jackson's administration. After its redemp- 

 tion a large fund remained in the Treasury, which 

 was deposited for safe keeping with the several 

 States, on condition that it should be returned when 

 required by the public wants. In 1849 the year 

 after the termination of an expensive war with Mex- 

 ico we found ourselves involved in a debt of $64,- 

 000,000 ; and this was the amount owed by the Gov- 

 ernment in 1860, just prior to the outbreak of the 

 rebellion. In the spring of 1861 our civil war com- 

 menced. Each year of its continuance made an 

 enormous addition to the debt ; and when, in the 

 spring of 1865, the nation successfully emerged from 

 the conflict, the obligations of the Government had 

 reached the immense sum of $2,873,992,909. The 

 Secretary of the Treasury shows that on the 1st day 

 of November, 1867, this amount had been reduced to 

 $2,491,504,450 ; but at the same time his report ex- 

 hibits an increase during the past year of $35,625,102 ; 

 for the debt on the 1st of November last is stated to 

 have been $2,527,129,552. It is estimated by the Sec- 

 retary that .the returns for the past month will add 

 to our liabilities the further sum of $11,000,000 

 making a total increase, during thirteen months, of 

 $46,500,000. 



In my message to Congress of December 4, 1865, it 

 was suggested that a policy should be devised which, 

 without Ibeing oppressive to the people, would at once 

 begin to effect a reduction of the debt, and, if per- 

 sisted in, discharge it fully within a definite number 

 of years. The Secretary of the Treasury forcibly rec- 

 ommends legislation of this character, and justly 



