In 1789, when the Government commenced operations under the Federal Constitution, it was burdened with an indebtedness of $75,000,000, created during the War of the Revolution.  This amount had been reduced to $45,000,000 when, in 1812, war was declared against Great Britain.  The three years’ struggle that followed largely increased the national obligations, and in 1816 they had attained the sum of $127,000,000.  Wise and economical legislation, however, enabled the Government to pay the entire amount within a period of twenty years, and the extinguishment of the national debt filled the land with rejoicing and was one of the great events of President Jackson’s Administration.  After its redemption 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 Mexico—­we found ourselves involved in a debt of $64,000,000; and this was the amount owed by the Government in 1860, just prior to the outbreak of the rebellion.  In the spring of 1861 our civil war commenced.  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 exhibits an increase during the past year of $35,625,102, for the debt on the 1st day of November last is stated to have been $2,527,129,552.  It is estimated by the Secretary 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 December 4, 1865, it was suggested that a policy should be devised which, without being oppressive to the people, would at once begin to effect a reduction of the debt, and, if persisted in, discharge it fully within a definite number of years.  The Secretary of the Treasury forcibly recommends legislation of this character, and justly urges that the longer it is deferred the more difficult must become its accomplishment.  We should follow the wise precedents established in 1789 and 1816, and without further delay make provision for the payment of our obligations at as early a period as may be practicable.  The fruits of their labors should be enjoyed by our citizens rather than used to build up and sustain moneyed monopolies in our own and other lands.  Our foreign debt is already computed by the Secretary of the Treasury at $850,000,000; citizens of foreign countries receive interest upon a large portion of our securities, and American taxpayers are made to contribute large sums for their support.  The idea that such a debt is to become permanent should