The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-05-22
CONDITION or TIE COUNTRY IN 1919.

,YAsy Aes Ct As.
- CONDITION or TIE COUNTRY IN 1919.
~ tAs commencement Of che year 1879. Just pro-
vieus 70 the breaking out OF the second war with
Crsas Britain the finances and commercial stand
ing Of this country wsro In what may bs Justly
termed . sound and satisfactory condition. Tho
debt which mad been contracted during the Rsvolu
toa In q gradual liquidation, with the pros
peos OF becoming extinguished the civil expenses
Of the government comparatively light; the burden
of taxation ives longer felt tradc nourished, CON-
progressed and expanded, and bright future
scented itself But tho approaching difficulties with the
mother country began to attract the attention Of
che people, and in short time the overbearng spirit
which manifested itself the other side Of the water
gave unmistakabe evidence that inevitable and
hosties finally announced existing by procla
nation from President Madison issued the 10th q
June, 1912
TIE WAR AND THE FIRST LOAN IN ANTICIPATION
lf4 5000 -gha OF IT.
Tho had boon anticipated by Congress, and
Qusnty the 18th Of March preceding loan Of eleven
millions Of dollars authorized It bore six per cent
interest," payable every three months the principal
the convenience the government after
1924 The books receiving subscriptions to the loan
were duly opened the first and second days OF May,
1872, ct Portsmouth, n H. Boston, Mass Providence,
RI, Hartford, Conn city of New York; Philadelphia,
Pa Baltimore, Nd; Washington, D.. c.. Richmond
Va, and Charleston 8 c. The subscribers, according to
the terms made known by Albert Gallan, who then
Secretary OF the Treasury pay the amount Of their
subscriptions in eight instaments twelve and half dol
lars each hundred dollars to be paid at the time Of
subscribing, and similar amount the 18th day OF
each Of the months Of June, July, August September
October November and December succeeding, the sub
m thc last
oates Of funded capital stock Of the denominations of
$780, e4s0, $1,000 a. 900 and $4,000 The spirit and
paotsm or at least the moneyed portion Of the people
bad become fairly aroused, and when the books
coesd 10 was found that but little over half OF tho loan
had boon taken.
Tho war was rapidly approaching, and eight mil
lions Of appropriated by the law authorizing
II to the payment Of the interest and redemption Of the
principal OF tho existing debt and with only three
and half millions in the treasury, the financial prospect
was for short time clouded About six millions had
boon subscribed less than onothird Of which amount
was taken by the people
the FIRsr ISSUE OF TREASURY NOTES.
In view Of this fact the Secretary OF the Treasury
recommended the passage Of authorizing the OF
year treasury notes. and Congress accordingly the
Both Of juno 1872 granted the necessary power FOR thai
purpose The bore interest at the OF i've
twonfhs per cent which and onebplf cent per
day on each hundred dollars. They not legal ten
ders made receivable for all dues the United
sates including dnties taxes and for tbs purchase of
public lands. There were many who dstrusted this
financial stroke or Mr. Gaatin and who contended that
the Aotss would utmatsly become worthless a. the
old continental money; but such predictions
fsishsd as they were freely taken par with the in
forest added IL accumulated until they found their
way into the banks and were by those institutions
retained 70 the extent OF their ability to do 50.
ra ANorHRR LoAN--BETTRR SUCCESS.
Hostitcs had now commenced and the liabilities OF
the government began 70 accumulae In January 1873
Congress authorized the Secretary to borrow add
u6mh sixteen millions Of dollars six per cent
steok This ives the largest loan ever yet asked by
tho United states at time, and although II
was looked upon a. being enormous, the people had
become fully to the necessity OF supporting the
government The proposals issued from the Treasury
stipulated that tho subscribers were privileged
10 take the any portion Of at nominal discount
OF twelve per cent in other words TO pay eghtyeght
dollars In coin for each one hundred dollars of stock
10 tae the stock at par at six per cent interest with an
annuity of ono and half per cent added for thirteen
years after which the stock to bear only the original six
per cent Tho books opened on the 18th OF
March, 1873 by the Goth of April tho time including
only thirty three business days tho loan absorbed
John Jacob Astor OF this city, took two millions and
Stephen Girmd and Mr. Parish, Of Philadolphia-the
former Frenchman by birth, and tho latter an English
man-took two millions for themselves and Ave millions
for their friends
THE THIRD LOAN AND DIRECT TAX UPoS THE
SO .o ti'.l. STATES.
The Of the continued 70 increase 10 such
extent that another loan rendered necessary,
and Congress- the I'd OF August following, passed
law authorizing the Secretary proposals for
md halfu on 40 aam term VIII tha
preceding loan was negotiated, and direct tax was
about the time levied upon the States then eighteen
In number, for three millions Proposals for the
last mentioned loan Of ami half millions
advertised for until the 2ad Of September 1sl3 upon the
following terms:-
The stock 70 be issued for the money spece) loaned
70 beer an interest Of six per per annum paya-
BILE quarter sary and the proposals TO distinctly state
the amount OF money offered be loaned and the rate
at which the aforesaid stock would be received for the
same This amount loaned 10 be paid into bank or
banks athorized by the Treasury In nsalmen 10 the
following mAnner:--one- eighth part, twelve dollars
ana fv cents on each hundred dollars the 10th day
ofocober one eighth part on the 18th day Of November
one fourth part twenty five dollars on each hun
bed dollars on tho 18th day OF each OF the ensuing
months OF December January and February The funded
stock To be thus Issued 10 be rrcdeemabe till the lst
OF December 1885, TO be transferable IN the same
ner as the other funded stock OF the United sato and
10 be charged for the regular and quarterly payment Of
w. principal upon the annual fund OF eight millions 4
dollars appropriated for the payment OF the principal and
interest OF the debt Of the United States
AT the time specified tho bids wcuppcned, and II was
found that twelve and half millions Of dollars had
been offered The best terms accepted which were
eighty eight dollars and twenty-five cents In coin for
each one hundred dollars Of stock
MR.. eALLATrs's FINANCIAL PLAN
may be here mentioned that the financial plan Of Mr.
Galstn adopted at the commencement Of the war; was
70 naks We revenue Of the goyerumeu equal 70 tho