The total debt of our country on the 1st September, aside from the sixty millions of bonds issued to the Pacific Railway, was $2,475,962,501; and here I mention, with great satisfaction, that since the 1st March last the debt has been reduced $49,500,758. The surplus revenue now accruing is not less than $100,000,000 a year, and will be, probably, not less than $125,000,000 a year, of which large sum not less than $75,000,000 must be attributed to the better enforcement of the laws and the economy now prevailing under a Republican Administration. And here comes the practical point. Large as is our surplus revenue, it should have been more, and would have been more but for the Repudiation menaced by the Democracy.
If we look at our bonded debt, we find it is now $2,107,936,300, upon which we pay not less than $124,000,000 in annual interest, the larger part at six per cent., the smaller at five per cent., gold. The difference between this interest and that paid by other powers is the measure of our annual loss. English three per cents. and French fours are firm in the market; but England and France have not the same immeasurable resources that are ours, nor is either so secure in its government. It is easy to see that our debt could have been funded without paying more than four per cent., but for the doubt cast upon our credit by the dishonest schemes of Repudiation. “Payment in Greenbacks” and “Taxation of Bonds” are costly cries. Without these there would have been $40,000,000 annually to swell our surplus revenue. But this sum, if invested in a sinking fund at four per cent. interest, would pay the whole bonded debt in less than thirty years. Such is our annual loss.
The sum-total of this loss directly chargeable upon the Repudiators is more than one hundred millions, already paid in taxes; and much I fear, fellow-citizens, that, before the nation can recover from the discredit inflicted upon it, another hundred millions will be paid in the same way. It is hard to see this immense treasure wrung by taxation from the toil of the people to pay these devices of a dishonest Democracy. Do not forget that the cost of this experiment is confined to no particular class. Wherever the tax-gatherer goes, there it is paid. Every workman pays it in his food and clothing; every mechanic and artisan, in his tools; every housewife, in her cooking-stove and flat-iron; every merchant, in the stamp upon his note; every man of salary, in the income tax; ay, every laborer, in his wood, his coal, his potatoes, and his salt. Many of these taxes, imposed under duress of war, will be removed soon, I trust; but still the enormous sum of forty millions annually must be contributed by the labor of the country, until the world is convinced, that, in spite of Democratic menace, the Republic will maintain its plighted faith to the end.
People wish to reduce taxation. I tell you how. Let no doubt rest upon the Public Faith. Then will the present burdensome taxation grow “fine by degrees and beautifully less.” It is the doubt which costs. It is with our country, as with an individual,—the doubt obliges the payment of extra interest. To stop that extra interest we must keep faith.
As we look at the origin of the greenback, we shall find a new motive for fidelity. I do not speak of that patriotic character which commends the national debt, but of the financial principle on which the greenback was first issued. It came from the overruling exigencies of self-defence. The national existence depended upon money, which could be had only through a forced loan. The greenback was the agency by which it was collected. The disloyal party resisted the passage of the original Act, prophesying danger and difficulty; but the safety of the nation required the risk, and the Republican Party assumed it. And now this same disloyal party, once against the greenback, insist upon continuing in peace what was justified only in war,—insist upon a forced loan, when the overruling exigencies of self-defence have ceased, and the nation is saved. To such absurdity is this party now driven.
The case is aggravated, when we consider the boundless resources of the country, through which in a short time even this great debt will be lightened, if the praters of Repudiation are silenced. Peace, financially as well as politically, is needed. Let us have peace. Nowhere will it be felt more than at the South, which is awakening to a consciousness of resources unknown while Slavery ruled. With these considerable additions to the national capital, five years cannot pass without a sensible diminution of our burdens. A rate of taxation, per capita, equal to only one half that of 1866, will pay even our present interest, all present expenses, and the entire principal, in less than twenty years. But to this end we must keep faith.
The attempt is aggravated still further, when it is considered that Repudiation is impossible. Try as you may, you cannot succeed. You may cause incalculable distress, and postpone the great day of peace, but you cannot do this thing. The national debt never can be repudiated. It will be paid, dollar for dollar, in coin, with interest to the end.