TEST OF TERRITORIAL SETTLEMENT AND EXPANSION.

“But in a country like ours there is another element besides population that helps to determine the movement of expenditures. That element can hardly be found in any other country. It is the increase and settlement of our territory, the organic increase of the nation by the addition of new States. To begin with the original thirteen States, and gauge expenditure till now by the increase of population alone, would be manifestly incorrect. But the fact that there have been added twenty-four States, and that we now have nine territories, not including Alaska, brings a new and important element into the calculation. It is impossible to estimate the effect of this element upon expenditures. But if we examine our own records from the beginning of the Government, it will appear that every great increase of settled territory has very considerably added to the expenditures.

“If these reflections be just, it will follow that the ordinary movement of our expenditures depends upon the action of two forces: first, the natural growth of population, and second, the extension of our territory and the increase in the number of our States. Some day, no doubt—and I hope at no distant day—we shall have reached the limit of territorial expansion. I hope we have reached it now, except to enlarge the number of States within our borders; and when we have settled our unoccupied lands, when we have laid down the fixed and certain boundaries of our country, then the movement of our expenditure in time of peace will be remitted to the operation of the one law, the increase of population. That law, as I have already intimated, is not an increase by a per cent. compounded annually, but by a per cent. that decreases annually. No doubt the expenditures will always increase from year to year; but they ought not to increase by the same per cent. from year to year; the rate of increase ought gradually to grow less.