The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-05-22

twenty yeAzs age h CIncann1N 40 ePPeo
desirous Of imprsssing upon n Eudisaos, thas
hs was tho fAthsr q ths idss ~ slayssng ~
negro, but ct the same time Informing mem
that there were obstacles In their WY, b3t ~
perseverance, they would finally aooonplish it,
that d. when no became President Alter oil,
would It not be much better II tho Ohief JUS
doe Of the United States remained In Washing
ton and rendered the government ell the Assist
ance in his power by his advice and otherwise
In bringing the assassin conspirstors TO the
punishment which their enormous orime justly
merits, than In travelling around the country
delivering speeches on universal suffrage to the
negroes and writing letters urging the forma-
ton of q new political party.
Our national Finances I'm 1914 and On
ward.
We publish to-day an epit0me OF that very
interesting period in the fiscal history Of this
country, extending from 1872 to 1925. Com
pared with the vast sums of indebtedness to
which the present war has accustomed US, It's
details appear insignificant enough, for it was
more difficult for the government to borrow
million in those days than 1t would be for 1t to
borrow q hundred millions now. But the
record is very suggestive of the progress we
have made in material wealth during the last
Hfty years In. 1918 we had population of
only nine millions, including million and
half Of slaves. The banking capital Of all the
States was, about that time, only seventy-fve
millions, and the circulation Of the banks
eighty millions. In 1860, on the other hand,
the capital of the State banks had increased to
4421, $3.50, 0s5 and their circulation to $207 ,l02-
At, and the population to thirty-one and half
millions
But our greatest financial development has
taken place since the rebellion began. The
national debt was only seventy-six millions IN
1850, and as it is now more than twenty-five
hundred millions, it follows that the govern
ment has borrowed, in different forms, not
much short of that immense aggregate, for the
nine hundred millions of currency is virtually
loan adapted for popular circulation. 1t is
true that, getting into debt is''not becoming
rich, and that heavy national debt is
anything but national blessing, although
there are some people in the world
who labor under the hallucination that it
is, nevertheless the fact that we have
been able to spend this large amount in the
space of four years, without becoming hope
lessly bankrupt, shows our wonderful strength,
resources and unity Of purpose. The war con-
solidated the North, and made it the giant and
the terror to treason and the world that it is;
and the recuperative powers of the country
are everywhere visiblein the prosperity Of the
people and the hopeful future that lies be-
fore u.s. l9
1t was so difficult for the government to bor-
row money to carry on the war IN 1918 that it
was forced to allow bonus on its six per cent
loans, and the best terms it could obtain was
$S8 25-l00 in coin for each hundred dollar
bond, and subsequently the bonuses had to be
increased so that in February, 1915, just before
the announcement of peace, the bonds were
selling at thirty per cent below par. Yet the en-
tire national debt was only hundred and twen-
ty-seven millions, eighty-nine millions of which
had been incurred during the war. The banks
outside of New England had suspended specie
payments, and their notes were at discount of
from twenty to thirty per cent, owing mainly
to the opposition of the federalists or peace
party whose great stronghold was New Eng
land, and especially Boston, and who threw all
the obstacles they could in the way of carry
ing on the war, because it interfered with their
commercial interests. With this view they
drained the banks of the Middle and Southern
States of their coin by collecting their notes and
demani ling specie from them in exchange, and
,sr I.,I 10, th,,r Pat
there was a sud- IN diversion, and between the
Ilth and the 18th of February, 1875, the pre-
mium on gold fell from twenty-five 10
two per cent, which of course resulted
in widespread commercial bankruptcy.
Government six per cents, howcvec, rose
twelve per cent leaving them still twelve per
cent below par The finances of the country
gradually improved, and its foreign trade re-
ceived an unlocked for impetus, 30 that, before
the close Of 1925, the debt had been. reduced
to seventy three millions. Meanwhile, how
ever, from 1916 to 1919, the establishment Of
the second United States Bank, under the
auspices Of Henry Clay, had resulted in great
havoc among the mercantile community. The
bank succeeded in raising the public securities
to par and resuming specie payments, but the
process of contraction employed involved a
large proportion of the debtors Of the country
in ruin.
The financial question had during this time
become the subject of political agitation,
and it mainly decided all the elections. The
same result is likely to follow the present con-
dition of our finances, but on far larger
scale. Those who expect to see speedy re-
sumption OF specie payments will be disap-
pointed. Our debt will probably soon aggre-
gate three thousand Millions and great
skill will be required in providing for the
payment of the interest and the gradual reduc-