The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-02-09

creased to that extent, as portion the
bonds redeemed others outstanding at the
time
In 1890 It was decided to fund the revo-
lutionary debt by means Of a bond issue.
The bonds ran in three SERIES the bulk
of them drawing per cent. interest the
total issue amounting to about S64, 100000.
In 1912 the government was again COM
PEELED to borrow money This time
loan of Sll 100000 was negotiated.
SELLING BONDS IN WAR TIME.
1t was in 1861 that the government
made the largest loan in its history up to
that time. Uncle Sam borrowed $780,
900, 900 then. At that time the credit of
| the government had become impaired.
Before congress adjourned in 1851 it con-
ferred upon the Secretary of the Treasury
greater power to contract q public debt
| than had ever been given to any of his
/ predecessors Early in August, immedi-
| ately after adjournment, armed with the
authority thus conferred upon him, Sec
rotary Chase hurried to New York to
! make a loan.
A meeting of the New York bankers
was called on the evening of Aug. 8, at
the residence IF John j. Cisco, the assis-
tant United States treasurer. Mr.. Coe,
president Of the American Exchange
Bank, proposed an association Of the
banks throughout the country for the
purpose of lending the government the
| capital of the country.
This plan met with instant favor. An
other meeting was held the following
day, and a committee reported that thir-
, ty-nine New York banks would agree to
the plan. Boston and Philadelphia banks
! also concurred.
The plan adopted was that there should
be an immediate issue Of $50,000,0O0 of
| treasury notes to run three years at 7.30
| Tho haOira IN talra flaFa
and be allowed to take $50, 600, 900 more
| the following October. The government
was to appeal to the people to subscribe
to the notes, and the banks to take them
in proportion to their capital.
THE GOVERNMENT DEBT.
The plan worked admirably. From
time to time since the war the govern
ment has made loans TO recuperate its
cash balance or to fund previous loans.
The interest bearing debt of the govern
ment on Jan. /, 1894, exclusive of the Pa
cifc railroad debt, was $685., 039,815.
| Uncle Sam has had his money troubles
in times past. His credit was quite low
just before and during the war. 1t was
the faith which Jay Cooke had in the
government that made his great fortune
Jay Cooke 81 Co, at the beginning Of the
war, did a great deal for the United
| States treasury. The firm possessed the
confidence of Salmon p Chase, who was
then Secretary of the Treasury, and they
made great deal of money by taking the
bonds from the government in big blocks
and dealing them out in smaller lots to
purchasers.
At times Of great financial depression
throughout the country caused by down.
right scarcity of money, the treasury de-
partment may come to the relief of capital
by anticipating the redemption Of bonds.
That is, If bond has not yet reached its
maturity, and the owner has thereby no
legal right 10 call upon the government
for payment, yet would like the money,
the Secretary of the Treasury may waive
the technicalities and take up the pledge,
giving the owner his equivalent in cash.
| The department sometimes anticipates
the payment of interest also TO relieve a
temporary stringency in the money
market.