Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-09-29
THE COST OF LOANS
Register Tillman'S Review of Govern
ment Finances.
CURRENCY OF The COUNTRY
Interesting information Regarding
Paper Issues.
A PU B Lie d OC { ME n L

Try, has completed valuable and COM
prcheEsive document, entitled "A Con-
densed History of the Currency of the
Country and of the Loans of the United
States from the Earliest Period to June 81.
1885, The work has received the ap
p1ovaI of ex-Secretary Carlisle, under whom
it was begun, and of Secretary Gage. 1t
will soon be issued from the government
printing office. Mr.. Tilman has spent
months of nard work on the document.
which contains more history of the cur
rency and loans of the country than ever
before collected in enc document.
In the document appears a history of
the currency of the country and of every
loan of the United States, with copy of
each obligation of the government from
1IS9 to the present time. 1t also contains
a compilation of statistical data, embrace
ing ali interests, premiums. discounts and
other profits and losses during that period.
Cost of Loans.
The historical portion of the publication
is of unusual interest. The part devoted to
the Expenses of the national Loan will
be revelation to the average reader. The
statement that the government has paid
interest on the various loans from 1883 to
June ~. 1896, of nearly $3,G00,OOO,OU is
surprising.
Occasionally the bonds have been sold al
a discount. and the ascertained loss there
by amounts to over $13,0OOGD while COM
missions aggregating Sl2,3I3, SJ3.i6 have
been paid from 1885 to 1896 to various per-
sons for placing the loans. Further losses
on account of premiums paid for bonds and
other obligations called in and Cancelled
prior TO maturity, aggregate nearly S124.-
Oo,p0- The total expenses of the vari-
Gus loans are over S5OO4O 100000. AS par
tial offset to this enormous expenditure
the sum of little more than SOS 100 900
czn 1a6 hy-
profts. in premiums on sales of bonds, etc.
making the total expenses on loans about
S2..1'.GU.UO. The total bond issues of the
last administration aggregated SIG, 315 400,
and the premiums realized amounted to
S1,13s.Ss6.74-
Early Currency
That portion of the work referring to the
early currency of the country, when beads
and shells were used money, and mus
ket bullets, tobacco, ETC., passed current
and were made legal tender cannot fail
to enlist deep attention. The issue of bills
OF credit of the colonial period and by the
Continental Congress is dealt with extern
sive!y. showing the vast depreciation that
occurred, when, in 1870. the paper was
worth more for an advertisement or a Joke
than for any prospect of any kind of re-
demption. BARRIERS shop in Philadelphia
was papered with it. and a dog coated with
tar and the bills stuck all over him was
Iaraded in the Streets" thus pointing as
with the hnger of fate. to what might
again occur, under condition of inflated
currency.
The first loan negotiated by the Continent
tal Congress December 81 1116) was for
the purpose of purchasing supplies to aid
IN building cruisers to prosecute the war
OF the revolution. BY contract the nav
ment was to be made in tobacco The loan
amounting TO the sum of s1S1 800 was OBJ
tanned from the Encouragement of France
December 3. III. another loan of $40 O0O
1D was authorized. This loan was also
Tor the purpose CT carrying on the war
OF the revolution. Only $S,2G1O 600 of the
amount was issued. 1t was also taken to
France, and at par, although by the terms
OF the contract ii was not to be paid Until
three years after the restoration of peace
loan OF SSDWO was obtained from Hol-
land. February 1. 17s5. which embraced a
lottery scheme through which the govern
ment paid d bonus of S2T.iOO0 and graft
hcations amounting to sSo72D. This loan
was needed to save the credit of the United
states. then greatly endangered nv the
fact that drafts in excess of the smount
already raised in Holland had been drawn
by the superintendent of finance and part
OF them had reached Europe
The only loan Eegotia ted by the Treasury
Department without authority OF law was
made by Secretary Hamilton September IL
ifS9- The amount was s191 .GjS.Si and the
money was obtained from the Bank of New
York and the Bank of North America. In
reporting his action to Congress The score
tary said: Obvious considera tons dictate
the propriety in future cases of making.
previous provisions by law for such loans
as the public exiSencies may call for. de-
hniug their extent and giving special an
thority 10 make them
Inc first treasury notes issued by the gov
eminent were authorized by the aCt of CON
gress CT June ~, 1S12. The amount was
SJV00O and the notes were sold at par-
They were redeemable one year after date
with > % per cent interest. OF the total
issue. notes amounting to S1GO appear 10
hfR tod fnr
In 1919 treasury notes to the amount of
s2J.tO,OO We're authorized
Notes RedeemabIc In 81 Bond.
Under this act s3.392.99l small treasury
notes. were issued bearing no interest
They were redeemable at the pleasure of
the government. In form they were as fol-
lows:
Treasury Department. March - 1915.
The United States promise 10 receive this
note Ter nve dollars in all payments to them
or TO fund the amount al . per cent in
terest on request, agreeably to the act of
Congress of February -. 1SI5."
Under the same act there was issued
Si309,4 400 treasury notes bearing pa per
cent interest. payable at the option of the
holder IN u per cent stock included in
said act The issue of said stock amounted
10 81 JD5.3J2 Is.
veterate borrower. From 1872 to 1916 there
was hardly year when Congress has not
authorized an Issue of short time treasury
notes, etc The first large bond issue was
made IN 1866 in the fern of .'6 per cent
stock, the amount being $1I 10000. This
stock was issued to the French govern
ment in part payment for the territory of
Louisiana, pursuant to the treaty of Anril
30, 1888. Heavy loans We're made IN lsI6-S
TO raise the money to carry on tbs Afcxican
war.
Bond issues in time of peace were fire.
quent. A loan of sa9,600,O00 was directed
10 be made by Congress June H. ISIS. to
provide funds for meeting the current ex-
peases of the government
War Loans.
The first loan on account of the war of
the rebellion was made in August, 1861.
The breaking out of the war; however. only
4 few weeks after the passage of the act
of March 2. 1861. authorizing the issue of
the treasury notes of 1851 necessitated
an increase in The issue thereof (Which
reached Ss5.364. t50 far In excess of the
amount originally contemplated.
Congress met in extra session July 4
1861. Eleven states had attempted TO Sc
cede from the Union and were in actual
revolt. Seventy-five thousand volunteers
had been called into the field to suppress
the rebellion. President Lincoln asked au.