Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-02-03

In 1890 the first issue of bonds to any
&C considerable extent was made. 1t was
round then that the Indebtedness incurred
by the war of the revolution was a matter
OF grave Importance. The Indebtedness was
in many forms, and on numerous accounts.
Alexander Hamilton came to the front
with plan, which, after long and heated
debate in Congress, was adopted. 1t was
decided to fund the revolutionary debt by
means of a bond issue The bonds ran in
three series, the bulk of them drawing G
ing to about S64, 10000 The scheme proved
to be a success, and Hamilton lived to
triumph over those who had opposed 1t. e
In 1872 the government was again COM
PEELED to borrow money. This time a loan
of S11 ,0oO.No was negotiated, stock being
issued for the amount borrowed. and the
revenues of the government pledged for it's
payment. Other loans followed at intervals
between this time and the beginning of the
civil war.
1t was in 1901 that the government made
the largest loan in its history up to that
time. In consideration of the difficulties
surrounding the situation and the critical
conditions of the times, that negotiation
may be classed as one Of the signal feats
in the financial history of the United
States. Uncle Sam borrowed $50, 600 600
on this deal
Memorable Occasion.
At that time the credit of the government
had become so impaired that large loan
could not be obtained in any ordinary way,
nor even a small temporary loan, except
for very short period and at a high rate
of interest Before Congress adjourned in
1861 1t conferred upon the Secretary of the
Treasury greater power to contract a pub
lie debt than had ever been given to any
of his predecessors. Early in August i'm
mediately after adjournment, armed with
the authority thus conferred upon him. Sec
rotary Chase hurried to New York to make
G loan.
A meeting of New York bankers was
called on the evening of August 8, at the
residence of John J. Cisco, the assistant
United States treasurer. 1t was a memoir
able occasion, and the results of the con-
ference then held were all important to the
nation. The financial situation was dis
cussed and various plans suggested for re-
lieving the country. Finally, Mr. Coe
president of the American Exchange Bank
proposed an association of the banks
throughout the country for the purpose of
lending To the government the capital Of
the country. This could be accomplished
very easily by the banks, and the money
distributed in small sums to the people
This plan met with instant favor. Another
meeting was held the following day. and a
committee appointed On August Is the
committee reported that thirty-nine New
York banks would agree to the plan. Bos-
ton and Philadelphia banks also concurred
The plan adopted was that there should
be an immediate issue of $JO,OOOOOO of
treasury notes to run three years at 73O
per cent. The banks were to take this and
be allowed TO take s50.0O0,0OO more the fol-
lowing October. The government was to
appeal to the people to subscribe to the
notes, and the banks to take them in pro-
portion to their capital.
The plan worked admirably, and three
issues of the notes were made They were
disposed of TO the people through the banks
and through agents, 1iS of whom were ap-
pointed to negotiate the notes and receive
a commission therefor From time to time
since the war the government has made
loans to recuperate it's cash balance or to
fund previous loans. The interest bearing
debt Of the government on January l. 1S.,.
exc i've of the Pacific railroad debt was
S5e.,, v,i9,3l5
FRANK G. CARPENTER