Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1890-08-01
A BOOK OF GREAT INTEREST.

A BOOK OF GREAT INTEREST.
1t Will Tell How the United States
Raised Money for the Civil War.
Especial Correspondence
NEW YORK, July 2l.-Mr. George S. Coe,
who is one of the best known bankers in
the United States, is writing a history of
one OF the most important episodes of the
war. Mr.. Coeis president of the American
Exchange bank of New York city. He is
a high authority Upon financial subjects,
both theoretical and practical. The story
wEsch he has to tell will show how the
government in it's great distress in the first
year of the wa was able to secure the
money to carry on the war, and the fnan-
cial support of tie united banking insti-
buttons of New York, Philadelphia and
Boston.
The history of the diplomacy and of the
battles of the war has been told with much
faithfulness of detail, and has been pre-
sented from all points of view, but
the story of the manner in which the
government was able to provide the
sinews of war has never vet been ade-
quately narrated. Such men as Sen
ator Conkling, Salmon P. Chase, William
Pitt Fessenden and others who are now al
most forgotten saw from the beginning
that the vital power in the conflict would
be the capacity of the government to pro-
vide the means for maintaining great
armies in the field. Mr.. Conkling, in a
speech in the house early in the war, de-
clared that it was to be a test of
The government, however, at the begin
ming had little credit; it had really de-
faulted on some of its obligations, and the
question which concerned the ablest men
in the country was not whether armies
could be raised, but whether the govern
ment could find the means to pay for cloth
ing, food, transportation, ammunition and
for creating a navy. 1t seemed rather a
dubious matter at first, and Mr.. Chase.
who was secretary of the treasury, while
hopeful, seemed sometimes to have that
desperate hope which is born of despair.
After the battle of Bull Run Mr.. Chase
came to New York, and was entertained at
the house of Mr.. John j. Cisco, where
nearly all of the leading bankers of the city
were invited to meet the secretary of the
treasury at dinner. to be followed by an
informal conversation respecting the con-
dition of he country and what the banks
would do toward providing it with money.
1t was probably one of the great questions
of the wal which was met at this meeting.
Th bankers talked with Secretary Chase
until a late hour at night. The next morn
ing they met in a room over the American
Exchange bank, and there after a half
hours discussion the banks of New York,
Philadelphia and Boston agreed to take
$50, 0O0,O 600 of the government loan, and in
timated that it would also float a second
loan if one should be necessary.
Mr.. Coc says that this is the first time in
the history OF this country's finances when
millions were talked of Familiarity. Before
that time the great operations were in the
thousands. The decision of the banks at
once established the credit of the govern
ment. The first loan of the government
was absorbed by the banks of the three
cities, and there was no question after that
of the ability of the government to raise
money. There were some bankers who be-
lieved that the banks exceeded their au-
thority in taking this loan, and technically
speaking it is very likely that they did, but
Mr.. Coe said that it was a question
whether they would raise money volun
tarily or whether the government would
coniiscatc property to provide the expenses
of the war. The war had been begun, and
the people had got to pay for it or submit
to the establishment of the Confederate
SoNCl lllCL
Mr.. Coe is of the belief that it would
have been possible for the banks to have
provided money for the government with
out the necessity of suspending specie pay-
ments. Through the operation of the New
York clearing house he believes this would
have been possible, and in his book he will
show how. The banks at the time of the
first loan were paying into the sub-treasury
about s ,000,0 900 a week, nearly every penny
of which, within seven days, came back to
the banks again, having been disbursed
from the governments; and it is Mr.. Goes
theory that that operation, through the ex-
quisite delicacy of operation afforded by
the clearing house, could lave been kept
up, even When the loans became
The anecdotal portions of this narrative
will be of extraordinary interest. MI. Coe
is one of the very few survivors of this Pc
Rod, and is almost the only one who was
present when the united banks of the east
resolved to come to the aid of the govern
ment, and with their enormous financial
power make it apparent that the govern
ment had but to call for money and would
receive it. E. J. EDWARDS,