In fact US federal debts in the late 1850s were near their lowest levels ever:
In preparation for the President’s state of the union report, Howell Cobb (of Georgia), the Secretary of the Treasury (Buchanan Administration), reported to Congress that based on projected spending, there would be dramatic increases in the debt of the government.
In his state of the Union report of December 5, 1859, President Buchanan’s Secretary of the United States Treasury issued his report stating that for fiscal year 1859, the total revenue of the US Treasury was $88,090,787. This was misleading, because $28,185,000 was ‘income’ from government borrowing. The actual total revenue from tariffs, and less the funds from the sale of public lands was $49,566,000. Tariff revenue contributed 92% of the total revenue of the country.
But the Congress spent $69,071,000, which was 29% more than it took in.
In fact US federal debts in the late 1850s were near their lowest levels ever: