The age-herald., 1898-11-16
THE DEBTS OF
 THE UNITED STATES

the Florida war, the Mexican war, the war of secession and the pro-Cuban war. The cost of the revolutionary war was, in round numbers, $135 000, 900; of the war of 1872, $75, 900; of the Mexican war, $S2,- 900 900; of the war of secession, $3,500 900 900, and of the pro-Cuban war; S360 100000. A government must have money to carry on war. War is often sudden. The treasury is low. Taxation is slow. Funds must be had at once for the support of the army and navy. Bonds are issued and sold to the highest bidders at home or abroad. They are merely a promise to pay back borrowed money, with interest at a stated per cent. The government becomes debtor to the bond buyer. Our public in- debtedness, foreign and domestic. amount ed at one time to over $2,773,0o0,0OO It is now about 5000, 100000.
 
 When the colonies united and declared their independence the articles of confed- eration did not give the central body power to raise money except by requisition upon the sovereign states. The states were slow in paying. In four years calls aggregating more than 5000 900 were made, and at the end of the fifth year only $1 100000 had been paid into the federal treasury. Something must be done. The first move was to au- thorize the raising of $5,OOOO0O by lottery Q770 A year later congress asked the several states to raise $5,O0OOOO by taxation, and early in 1779 it called upon the states for their quotas of $15000,0O0 for the year. and for $6,000,000 annually for eighteen years to come as sinking fund In lieo, Colonel John Laurens was sent as special commissioner to Paris to secure a loan He was successful This put us in debt to France.
 In 17S3, congress being being unable to pay either officers or men of the army, an anonymous address was circulated advising the forces at Newburg to enforce ther claims. The situation became critical, but Washington, by the exercise of great tact, obtained from the officers a declaration or faith in congress. The author of the ad- dress was John Armstrong, afterward sec retary of war. Congress granted five years full pay to officers in lieu or hait pay for life, as a result of this situation We borrowed money from Holland and Spain as well as from France, to meet our obligations. To meet the interest on these debts temporary loans had to be negotiat- ed abroad at exorbitant rates, and John Adams declared that our people were prey to every robber, pirate and cheat in Europe As concerned our domestic credi- tors, interest went altogether unpaid. This downward course of our finances threatened a dissolution of the union
 States had debts of ther own, and were creditors of sister states, and the delinquent cy of one was made the excuse of another for not helping the national treasury. In 179O we had a floating debt of nearly $55,- OOo 900, made up as follows: We owed France, Spain and Holland some S12,0O0O00 (our foreign debt'), and to creditors at home (our domestic debtO some $42, 900. Alexander Hamilton startled the world by proposing that congress not only fund and pay this debt but assume and pay the un- paid war debt of the states. amounting to $25 000 000. This made a total obligation of $S0 000 900 on a nation just starting out in business The last proposition met with stout opposition, but was finally carried
 with the first.
 By way of example,: A loan of 3,OO0O00 f1orins, to replace the old foreign debt, was quickly raised in Holland at 5A per cent
 inclusive of expenses. The adjustment at home was slower Congress established new sources of revenue, internal revenue taxes tariff on imports, etc.; the country prospered, and presently there was a de- mand for the gradual reduction of the en-
 tire public debt Congress passed an act for it's redemption in 1795, which forced Hamilton to resign, as, in view of the In- dian war then waging. the treasury was low and unable to meet its obligations of interest. etc., and pay current expenses. Governments like to pay their honest debts and re-establish surer, stronger
 credit. We became prosperous in the early years of this century that in 1885 we were entirely out of debt. On New Years
 day President Jackson sent in his ,nessage to congress the announcement that the na- tional debt was paid off; an incumbrance upon the American people which amounted, in 1790 to $S0, 900 000 and in 1916 to more than $127, GOO 900, stood discharged. What did we do then with our surplus revenue? What became of the millions that began pilng up in the vaults of the treasury? We d1-
 vided them among the states in proportion to their representation in congress. It was
 dangerous to keep so vast a sum as $42.- 000 GOO lying idle in Washington. New York
 received over $4000,000 as her share of the spells.
 The Seminole war in Florida broke out
 in 1887, and immediately new debt began to pile up. The Mexican war followed, and largely increased it's growth. Then came
 the civil war. when it began to grow at the
 rate of $4,000000 a month. This progress
 was kept uD until 1S63, when the increase
 was S0, 0,00O month, up to April 1865. In May. June, July, August and September, 1865, the increase was over $S4.000,000 a month
 Nations do not pay their debts because 1t costs too much money to do 1t, in the first place; and, in the second, because it is re- | garded as hook of steel to 8 citizen to | have him own a few government bonds. | This last is the sentimental view. No man | is a complete patriot until he owns govern | ment bonds; then he feels sort of proprie- | tary interest England's public debt began | in 1889, and amounts today to the enormous 1 sum of B, 800, 0000e0, yet the tight little l island wouldn't part with 1t. Frances pub | lie debt is over $6. 800 .OO0. .OOO Poor Spain! 1 She not only owes $1,5OooOO,00o. but has all l her sources of territorial revenue cut off. HOW ROBSON WAS PLEASED