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