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EXPOSED.



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Democratic speakers and newspapers are
actively engaged in falsifying the financial
record, during and since the war. They do
this in order to persuade the unreflecting and
ignorant that the present high taxation was
none of their creation, and to convict their
opponents of wasteful expenditures since the
war closed. The national debt is the result
of Democratic treason. Every rebel statesman,
every rebel general was a Democrat. Every
one of them now alive is a Democrat. The
principal ones were delegates to the convention
that ru,et in New York' recently. Robert
Tombs, of Georgia, declared in a recent speech
that " the Democratic party begun the rebel-
lion in 1861, and that there would be no peace
until it was restored to power." The North-
ern copperheads doubled the natural burden
of the war by prolonging it at least two years
through their "fire in the rear" policy.
They fought for the rebellion by means of
draft-riots, such as that Horatio Seymour's
friends led and carried on in New York in
18G3. Rebellion and Democracy are convert-
ible terms. If there had been no rebellion
there would have been no national debt, and
consequently no high taxation. Hence, the
Democratic party are the responsible authors
of this heavy load. The leaders know this,
and try to shirk the responsibility by the cry
of " wasteful expenditures and administrative
corruption." They forget that the Republi-
cans have not controlled the expenditure, they
have only made the appropriations . President
Johnson, who stands endorsed and his policy
accepted by the recent National Democratic
Convention, has had executive control, and
his administration is consequently responsible
for most of the disbursements since the war
clo ' <1. If his cotrrse is acceptable to the
Democracy, then they and not the Republicans



are responsible for any corruption in the dis-
bursement of the appropriations made by
Congress.

As a specimen of the falsehoods circulated,
it is stated by a leading Democratic journal,
in an article now having wide circulation,
that there have been fifteen hundred million dol-
lars ($1,500,000,000) raised by taxation since
the war closed, which have chiefly been dis-
bursed for the Freedmen's Bureau and recon-
struction expenses.

Horatio Seymour, Democratic candidate for

the Presidency, in a late speech at the Cooper

Institute, New York, made this charge against

the Republican party :

" Since the war closed, in 1865, the Government has
spent lor its expenses, in addition to its payment on
principal or interest of public debt, more than one
thousand million dollars. Of this sum there has been
nearly eight hundred millions spent on the army and
navy and for military purposes. This is nearly one-
third of the national debt. This was spent in time of
peace."

See how plain a tale will convict these liars
and slanderers. Hon. James G. Blaine, mem-
ber of the House of Representatives from
Maine, on the 27th of June, made the following
statement in reply to Seymour's charge :

" When the war closed, by the surrender of Lee,
on the 9th of April, 18G5, the armies of the Union
bore the names of nearly a million men on the rolls;
and our navy, in its vast and widely-extended duty
of blockading three thousand miles of coast, had
nearly five hundred vessels in service, with a corres-
ponding number of men. The first result of Grant's
magnificent series of victories and final triumph
over the rebellion was to muster out these countless
hosts which had borne our standard with such glory
on the land and on the sea. Months of pay were due
to more than half the army; the well-earned closing
bounty was due to all ; and the sailors, besides
their back pay, were to receive millions of prize
money honestly their own. The vast and almost
incalculable amount needed to be provided for these
purposes must be had at once, and, thanks to the
patriotism and the wealth of our people, it was had
at once. I have this morning visited the Treasury
Department, and by the official statements which I
hold in my hand it appears that the disbursements
for the army and navy for' the ono hundred and
seventy-four days following Grant's closing victory
amounted to six hundred and twenty-five million



dollars. Hence it will be seen that more than three-
fourths of the eight hundred millions so trium-
phantly paraded by Governor Seymour as the war
anil navy expenses of the past three years were
really disbursed almost in one sum at the close of

hostilities, as the necessary expenses of musterine out
our enormous military and naval forces. To suimlv
this vast sum the current receipts of the Govern-
ment were consumed, and the people directly
advanced rive hundred and thirty millions, by sub-
scribing that amount to the ever-memorable .seven-
irjirty loan.

*******
" Six hundred and twenty-five millions of Gover-
nor Seymour's eight hundred millions being thus
expended in mustering out the volunteers, his own
figures show that the current and legitimate expense
o both army and navy for the past three years of
peace have been but one hundred and seventy-five
million dollars, or a little more than fifty-ei°ht
millions per annum for both branches of the service
the Governor's figures thus reduced are not far
from the truth, and they show a degree of economy
?£e e unknown in Democratic times. Take the year
iNi». lor example, in the administration of Mr
Buchanan, and we find that the expenses of the
navy were fourteen millions, and of the army
nearly twenty-six millions-for the two well ni-h
lorty millions— and that was in gold, and with an
army and navy of less numbers than have been
deemed necessary for the security of the public
peace during the past three years. Taking the dif-
ference m the amount of force and the fact that the
expenditures of Mr. Buchanan's administration
were in coin and the present expenditure in paper,
it will be seen that the result shows strongly in
lavor of the economy of army expenses as adminis-
tered by General Grant. The army to-day, in fact
costs much less per regiment in paper than it cost
per regiment in gold under the last Democratic
fi ures "* a S ° mUCh f ° r Governor Seymour's



EXPENSES OF THE GOVERNMENT.

The following correspondence explains itself:
The large reduction of taxation that has taken
place since the war closed is the best evidence
of both the wisdom and economy of the Re-
publican party as represented by the majority
in Congress. The totals show how designedly
false are the Democratic charges. Mr. Wells
is one of the ablest of our public officers, a
man of non-partisan character, strictly reli-
able and thoroughly master of the questions
on which he writes :

LETTER OF HON. W. B. ALLISON.

House of Representatives,

Committee of Ways and Means,
Washington, D. C, July 9, i^g,
Hon. David A. Wells,

Special Commissioner of the Revenue:
Sib— J shall esteem it a favor if you will furnish me
at your earliest convenience, with such official infor-
mation, bearing upon the following questions, as may
be in your possession : '

1st. What have been the National receipts arid n-
penditures for the fiscal year ending June SO, 1868 ? '
~d. lo what extent has taxation been abated or

^ , lll'!, Ce the te ™'"ati"" of the war, or since
July l lobo :

3d. What have been the expenditures, in Bfiarsaate
and detail, of the War Department since the surrender
of Lee, in April, 1865?

4th. What have been the expenditures of the Navv
Oepartinent since the surrender of Lee, in April, 1865 i

SUi. What have been the expenditures, aggregate
and annual, ot the "Freedmen's Bureau " and for

Reconstruction,", up to July 1, 1868 I
1 am yours,' most respectfully,

WM/B. ALLISON.



2

REPLY OF SPECIAL COMMISSIONER WELLS.

Treasury Department, Office Special

Commissioner of the Revenue.
Washington, July 15, iscs
Hon. William B. Allison, M. C:

Sir— I have the honor to acknowledge the recemt
ot your nolo ol July 9, and in reference to the same I
submit the following statements, premising However
that only substantial accuracy can be claimed for the
account of receipts and expenditures for t e U )
year ending June 30, 1868; inasmuch as sufficient Unic
has : not yet elapsed to allow of a perfect a , d A ,
^dement on the books of the Tre^ury Dcpartmem
of all the accounts of the last quarter of 'the last fiscal

EIRST.-RECEIPTS AND EXPENDITURES.

J <eC n!? tS '~ Th l\ " !U - i0 " :l1 recei ' ,ts of revenue Iron,
.111 »<"it;'». ior the fiscal year ending June 30, 1868
were substantially as follows : ' '

Customs (gold) «, fi o r l(V) nm

I«'t«-nal Revenue (currency):::".::::-; Kimum
Miscellaneous (currency;...:..... 470000O0

Public Lauds and directtax (cui'y)" Xm'fiOO

Total 8100,300,000

EXPENDITURES.

The expenditure of the Government 011 account of
interest on the pWbllc debt for the fiscal y , 1 i, ■
June 30, 1m-,s, W ; L , S 14 1,635.551. 13. y • B

I'he aggregate expenditures of the several denarl-

%3mA ^\ c r?" v ^r e ' n ,br ,|,(; "■•'»"■ 53*35$.

X-_J,yi4,6,4 56, making a total eapen<Uture for the
fiscal year ending June 30, 1868, of «;,71 550 "••". a '
/uKSof'^M™- 1 S " r f'" Sfl - f ' *«•*« "ver'e'xpendi-
in^ l es l "| al ' VS ' S "" l " Mr , ' x i 1l '" (lilHR ' H affords the follow-

Intercst.— The present condition of the funded am'
iutweet-beadsa debt of the United Stajte*, exclusive
of the bonds issued to the Pacific Railroad Companies
(the .merest on which is a charge upon the roads!
necessitates a present annual expenditure on apcoun
of interest of about §11^6,01)0,000.

The excess ol 'expenditure on account of-intere-i
over this amount during the last f IS eal year was due
mainly to payments on account of accumulated in
terest on trie " compound interest notes," and will not
again appear in the future disbursements of the Treas
tiry on account of interest.

NATIONAL EXPENDITURES OTHER THAN FOR
INTEREST.

Civil Ust.— Embracing the expenditures of the Ex-
ecutive, Legislative, and Judiciary, Foreign Inter-
course, Territories, Collection of the Revenue, District
of Columbia, Public Lands, Mints and Assail Offices
Coast Survey, Light-Houses, Post-Office Drfiricv,,'

The expenditures under this head, for the fiscal year
ending June 30, 1868, were .S53.00ll.846 05.

The estimate for the present fiscal year, as deduced
from the appropriation bills, ami including permanent
appropriations is about $36,000,000.

Interior Department.— The expenditures undai
this head tor the fiscal year ending June 30 1868
were $27,*82,6,6.27, which were apportioned sub:
stantially as lollows :

For Pensions cpo m r - r

For linlmns «**Jti£Z£Z33&affi

Navy Department.— The expenditures tinder tin*
head for the fiscal year ending June CO, 1868, were
#23,7/5,502.72,

The appropriations for the service of the Navy De-
partment tor the present fiscal year are $17,300,000

the following table shows the expenditure ol the
[f£rf? D 5P artinent si"ce, and including the fiscal year,

S§2 ?!2,074,5r;a

iSli ~ C3,2ii,M5

Iffi i 85.733,292

lsl « 129 s/;t 771;

:?V2 43,324,118

{*,' 31,034,0114

J300 "5 775 50"

1809, appropriated ..\SZZ"'.Z"^'.'.\ 17|30q|000



■ War Department.— The total disbursements made
under the direction of, or through\the War Depart-
ment, for the fiscal year ending .Inne GO, i'aSL were
$123,246,648 62. Of this amount there were paid-

For Bounties *:w,0M,onu

For Reimbursing i-jtate War Claims 10,338,188

For Engineer Bureau, (niainlyi river and

liarbor improvements) * 6,132,020

For Payments for property lost or destroyed
In the military service of the United
states, act of March 3, 1849, and supple-
ments thereto, estimated 5,111,3(10

For Subsistence of Indians, estimated 1,000,000

k or Freedmen's Bureau 3,215,000

For Expenses, Beconstruction 1,799,270

For National Cemeteries 792,800

For Commutation of Rations of Prisoners
of War 152,000

Total _ J$00,533,23S

Tliis amount, deducted from the aggregate expendi-
tures above given, indicate the regular and legitimate
army expenditures for the fiscal year ending June 30,
1SG8, to have been $56,713,410, of which no inconsid-
erable part is justly chargeable to the expenses atten-
dant upon the existence of Indian hostilities upon the
plains in the Summer and Fall of 1867, which largely
and exceptionality augmented the cost of transporta-
tion and subsistence.

The military appropriations for the current fiscal
year are $33,081,013.

CLASSIFICATION OF EXPENDITDEES.
If we divide the total expenditure of the last fiscal
year into "ordinary expense*," or those which are re-
quired to support and maintain the Government and
'• extraordinary expenses," or those which have been
the unavoidable results of the war, we have the fol-
lowing classification :



ORDINARY EXPENDITURES.
Fiscal Year, 1887-'68.
Actnal.



1868-'69.
Estimated or
Appropriated
civil IJst (Legislative, Execu-
tive-) $53,0O9,S46 95 $30,000,000

Interior (Indians) 4,000,000 00 2,500,000

Nitvv Department 25,775,502 72 17,300,000

War Department 56,713,410 00 33,081,013

Engineer Bureau (Rivers and
Harbors) 6,132,020 00 1,500,000

Total $140,231,379 07 $90,3S1,013

EXTRAORDINARY EXPENDITURES.



lS6V-'68.
Actual.



Interest Public Debt sj

Pensions

1 Inn 11 ties

Freedmen's Bureau

Reconstruction expenses

Reimbursing States

Payment for property lost or
destroyed In the military ser-
vice oi the United States

Subsistence of Indians

National cemeteries

Commutation of Prisoner's ra-
tions



l«68-'69
Estimated or
Appropriated
41,035,551 $126,000,000
23,282,076 25,000,000



38,000,000
3,215,000
1,799,270

10,330.188



5,111.300

1,000,000

792,800

152.000



40,000,000
500,000



6,000,01 X)
1,000,W)0



Total $225,318,845 $198,500,000

SECOND.-REDUCTION OF TAXATION.

The amount of taxes abated or repealed since the
close of the war has been estimated as follows:

By act of July 13, 1806 $60,000,000

By act of March 2, 1807 40,000,000

By act of Feb. 3, 1S68, (exemption of

raw cotton) 23,769,000

By act of March 31, 1805 43,500,000

Total $107,209,000

By the system of Internal Revenue which prevailed
m the close of the war, taxation may be said to have
been all but universal; land, agricultural produce,
unmanufactured lumber, breadstuff's and a few other
forms of property or products only being excepted. An
aggregate of (en thousand distinct articles or products
made available 11s sources of Internal Revenue in July,
JS65, would probably be an under rather than an over
estimate. At the present time, of all manufactured
articles of products of industry, the following only are
subject to specific or direct taxation : distilled spirits,



fermented liquors, manufactured tobacco, gas, matches.
and playing-cards. Perfumery, cosmetics, pafenl
medicines, and a t\:w other manufactured articles, arc
subjected to a stamp-tax proportioned to their seilnii:
price. Since July, 1865, furthermore, the additional
tax of five per cent, on incomes in excess of $5,u00
has been repealed, and the exemption in all incomes
has been increased from $600 to $1,000. The taxation
formerly imposed on the gross receipts accruing from
the transportation of merchandise has also been en
tlrely removed. Coincident Willi the above reduction
of taxation, or from the 31st of August, 1865, to the
30th of June, 1868, the aggregate of the national in-;
debtedness, including cash in the Treasury, exhibits a
reduction in round numbers of ($250,000,000) two hun-
dred and ffty millions ! On this abatement of tin:
debt, the reduction of the interest, calculated at six
per centum, would be ($15,000,000) fifteen millions
per annum.

THIRD.— EXPENDITURES OF THE WAR

DEPAR TMENT.
The aggregate expenditures made through, or under
the direction of the War Department, from April 1,
1865, to June 30, 1868, inclusive, were $917,117,0-13 43.
Of this aggregate, the disbursements for nine months,
or from April 1, 1865, to December 31, of the same
year, as stated by quarters, were as follows:

From April 1 to June 30, 1805 $-114,196,277 30

From June 30 to Sept. 30, 1805 105,309,237 :<2

From Sept. 30 to Dec. 31, 1805 OS.122,541 05

Total $047,088,050 33

It thus appears that of the above total expenditures
of the War Department, $647,688,000, or 70 per cent,
of the whole, were directly contingent upon the ter-
mination of the war and the disbanding of the army,
and were disbursed within the nine months immedi-
ately succeeding the surrender of Lee, in April, 1865.
The balance of expenditure charged to the War De-
partment on the books of the Treasury, viz : $269,428,-
987 10, covers a period of thirty months, or from Jan-
uary 1, 1866, to June 30, 1868, and represents iln
disbursements further contingent upon the termination
of the war, such as arrears of pay and transportation
of troops; the regular expenses of the military est.ili
lishment; the expense of the Indian War in ilie
Summer and Fall of 1867; the payment of bounties
-($49,382,859 from July 1, 1866, to June 30, 1868) ; the
payments for property lost or destroyed in the mili-
tary service of the United States ($11,000,000); He-
reimbursement of State claims (§10,330,000 in 1S07-S);
river and harbor improvements, and the expenses 01
fortifications; subsistence of Indians; Fieedn.enV
Bureau; expenses of Reconstruction, &c, &c.

FOURTH-EXPENDITURES OF THE NAVY
DEPARTMENT.
The expenditures of the Navy Department from
April 1, 1865, to June 30, 1868, were $133,119,296 37.
Of this amount, $59,847,889 58, or 45 per cent., were
disbursed within the nine months immediately suc-
ceeding the termination of the war in April, 1865.
The balance of the above expenditure, $73,271,407,
covers the regular expenses of the navy for a period
of thirty months, ending July 30, 1S68, as well as the
disbursements on account of prize money and for the
settlement of contracts entered into prior to the ter-
mination of the war.

FIFTH- FREEDMEN'S B UREA U AND RECON-
STRUCTION.
According to the accounts of the Treasury the
expenses of the Freedmen's Bureau, since its organi-
zation in 1866, have been as follows :

Disbursements prior to June 30, 1S67 $2,402,000

Disbursements from July 1, 1S07, to June

30,186a 3,215,000

Total $5,017,000

Concerning the proportion of this expenditure in-
curred by the Bureau tor the relief of the starving and
destitute of both races, and for educational or other
purposes, the Treasury has no information.

According to the account of the Treasury, tho ex-
penditures contingent upon the acts of Congress regu-
lating " Reconstruction," have been as follows :

Disbursements prior to June 30, 1807 $145,430 5G

Disbursements from July 1 , 1SG7, to June

30T1SO8 1,799,270 00

Total $2,314,700 SG






The above statement*, derived trom the books nnd
accounts of the Treasury Department, are believed to
be substantially correct.

I am yours, very- respect fuU^ a _ ^^

U. 3. Special Commissioner of Revenue.

Appropriations for the Current Fiscal Year.

Mr. Blaine, already quoted, thus states the
appropriations made for the fiscal year ending
June 30, 1869:

For the ordinary expenditures of Government for the
fiscal year which has just begun the appropriations are
as follows :
Executive, legislative, and judicial, em-

^n?o* n De P al ' tment SalariG ? ^.f 17.480.000 CO

For hi^mv ."::'.:'.:"'.*.'.'.'.'.'.'.'.'.'.'.'.'.'. 33,081,01310

For the Navy '...."..""". 17,500,000 00

West Point Military Academy SJf'SSS £2

Consular and diplomatic service... V^'tl X)

Post-Office Department iWvm m

Indian bureau, treaties, &c 3'wK'Sflh ffi

Bivers and harbors fr™ 000 09

Collecting the Revenue :....,. j,joj,vw ou

Sundry Civil Expenditures connected

with the various Departments G.O-O.OUJ to

Miscellaneous expenses of all kinds, in-
cluding cost of certain public bmlclmgs
throughout the country, expenses ot
reconstruction, expense of closing up

Freedmen's Bureau.. Vc ••••• J.ooo.uuu oo

Deficiencies of various kinds in the uii-
f'erent appropriations ..oou.uuu w

Making a total of. ?1QI!,S18,447 10



THE FREEDMEN'S BUREAU — LETTER OF GEXICRAh
0. O. HOWARD.

A Democratic member of Congress from
Pennsylvania recently delivered a caret ully
elaborated tissue of misstatements with regard
to the Freedmen's Bureau, to which the Com-
missioner replies as follows :

" War Department,
Bureau of Refugees, Frcedmen and Abandoned Lands,
Washington, July 17, 180b.

H J>;r T '&V-Iu IO t'ne speech of Hon. B. M. Boyer, of
Pennsylvania, June 30. 1868, printed in the GM>«July
15, there are manv siatemenls and miercners calcu-
lated to make a false impression respecting the ex-
penses of the Freedmen's Bureau.



By confusing estimates Willi actual expenditures,
and by repeating both costs and estimates, he foots up
amounts nearly four times the true sum. Forinstance,
be eives General Howard's estimate of the probable
expenses for the year ending June 30, 186/, as $11.-
684,450, and says, " this estimate is much under tho

aC Tln 1 s C estimate was reduced to $6,914,450 which
amount was appropriated by Congress. But the actual
expenditure for all purposes during the same year was
S"^ 070 459 97

A correct exhibit of the cash receipts and expenses
is given in your report of March 10, 1868. This makes
the total sum expended from the organization ot the
Bureau (including assumed accounts of Department ol
Freedmen's Affairs from January 1,1865,) to January
1, 1868, $5,955,888 49. This includes $500,000, Special
Relief Fund, and $50,000 transferred to Agricultural
Bureau. , , - ,

All receipts from rents of abandoned lands, Bales
of crops, taxes, fines, and all miscellaneous sources,
are accounted for in this exhibit. All supplies fur-
nished by the Quartermaster, Commissary, and
Medical Departments, after July 1, 1866, were
charged to the Bureau and paid for out of the appro-

The supplies furnished previous to that date,
not paid for, were—

Quartermaster's property •^t'.'S?. w

Medical Stores - *»'*» 1?

Commissary Stores ,i,/-i,jii do

Total $2,330,788 72

Acid am'ts'exp'eiided i'rom appropriates, 5,055,888 -10

Total $8,280,677 21

Nothing can possibly be added, unless it be the
pay of army officers on duty in the Bureau, whe
would have received the same pay had they not
been detailed lor this duty, which, according to Mr
Boyer's figures, amounted the first year to $541,194.
Multiplied by three, this gives $1,023,58:3, though
the number of officers serving now in the Bureau is
only one hundred and forty-seven. Making the
most liberal allowance, the total cost of the Bureau

for three years has been $9,9;j4,370 /2

< lr, per annum 3,318,123 5i

Instead of over twelve millions annually, as stated
by Mr. Boyer.

A large part of these expenditures was lor tne
benefit of Southern whites reduced to poverty by
the rebellion.

Very respectfully, your obedient servant,

O. O. HOWARD,
Major-General, Commissioner.






GlB'WN Brothers, Printers, Washingl'on.'Drc.



LBAJtf?"



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Online LibraryYA Pamphlet Collection (Library of Congress) DLCDemocratic falsehoods exposed. Facts for the people → online text (page 1 of 1)