Without constructive economy in Government expenditures we should not now
be enjoying these results or these prospects. Because we are not now
physically at war, some people are disposed to forget that our war debt
still remains. The Nation must make financial sacrifices, accompanied by a
stern self-denial in public expenditures, until we have conquered the
disabilities of our public finance. While our obligation to veterans and
dependents is large and continuing, the heavier burden of the national debt
is being steadily eliminated. At the end of this fiscal year it will be
reduced from about $26,600,000,000 to about $17,975,000,000. Annual
interest, including war savings, will have been reduced from $1,055,000,000
to $670,0001,000. The sacrifices of the people, the economy of the
Government, are showing remarkable results. They should be continued for
the purpose of relieving the Nation of the burden of interest and debt and
releasing revenue for internal improvements and national development.
Not only the amount, but the rate, of Government interest has been reduced.
Callable bonds have been refunded and paid, so that during this year the
average rate of interest on the present public debt for the first time fell
below 4 per cent. Keeping the credit of the Nation high is a tremendously
profitable operation.