CHAPTER XXXIII. THE PUBLIC DEBT. OUR public debt as well as finances is under the control of the Treasury Department. The first public debt was occasioned by the war of the Revolution, contracted partly abroad, but largely among our own citizens. To aid us, the French government guaranteed loans we made in Paris. Holland also aided us. Our own citizens became creditors for supplies and personal services, for some of which they held the written promises of the government. In 1790, Congress made provision for funding the domestic debt, and issuing the obligations of the government therefor in the form of stock. In 1795, a loan was opened, the subscriptions to which were authorized to be paid in the certificates given to our creditors abroad for money loaned our government. The obligations given under these acts, commonly called government stocks, constituted our public debt. The evidence public indebtedness has always been in this form, except where treasury notes and certificates of temporary indebtedness have been issued. of our Treasury notes, sometimes bearing interest, and at others not, have been issued on several occasions, they forming a portion of the public debt, to wit, during the war of 1812; on the failure of the State banks in 1837; in 1842, when the duties under the compromise act of 1832 were reduced to twenty per cent; during the Mexican war in 1846–7; and during the rebellion of 1861, and afterward. Certificates of indebtedness are given on the settlement of accounts at the treasury, bearing interest, and are usually payable at a short date, or fundable into public stocks. Since 1846, government stocks, which are now in the form of bonds, are of two kinds, payable at some future day. One is called "registered," and the interest is paid on the express directions given, when due, by the register of the treasury, and the other has "coupons," being certificates of the interest payable at different times while the loan runs, which are cut off and presented at the treasury, or to an assistant, on which the interest is paid. This class of bonds pass by delivery, and are usually preferred by those holding limited quantities. The others, which can only be transferred by certain written formalities, are considered the safest to keep, though in other respects not so convenient. The public debt occasioned by the Revolution and the second war with Great Britain in 1812, except a few obligations not presented, was wholly canceled in 1835, during Jackson's presidency. In 1837, it began to increase, and has since varied from two millions of dollars to near three thousand millions. The total annual expenses of the government, aside from interest on the public debt, have increased from $1,877,903.77 to $229,915,088.11. The following statement is from the register of the treasury, who is the great book-keeper of the government: Statement of the public debt on the 1st day of January in each of the years from 1791 to 1842, inclusive, and at various dates in subsequent years to July 1, 1868. On the 1st day of January....1791.... $75,463,476 52 On the 20th day of November. 1851..... On the 17th day of November. 1855..... 1858..... 62,560,395 26 65,131,692 13 67,340,628 78 39,969,731 05 30,963,909 64 ..... 29,060,386 90 44,910,777 66 This debt now consists of registered and coupon bonds, called stocks, by certificates of indebtedness and United States obligations known as treasury notes, now, from the color of the printing on the back, commonly called "greenbacks." It does not include unsettled claims which may exist |