The National tribune., 1899-11-16
FINANCES OF THE WAR.
Money Expended During Our Conflict With
Spain
Lyman J. Gage, in Frank Leslie's.

Lyman j fdDe, IN FfdhE LeateS S.
Early in the Spring of 1898 it became ap
parent that there was little proba ilitN
| we should escape war with Spain. Feb
| Is the Maine was destroyed in the Harbo
| of Havana, and early in March the sug
gestion that Consul-General Lee be re
called from that city convinced the au
| thoriticS that the time for prompt anC
energetic preparation had arrived. Leaders
! in both Houses of Congress were invited
TO confer with the President, with the re-
suit that on March a bill appropriating
S5O,OOOOO for the National defense was
| passed.
The strong position of the National
Treasury, which then held S224 ,541 ,OOC
available cash, of which S16S, ,SS3, 900 was
in gold, made it entirely feasible TO ap-
propriate at once so large sum of money
This sum to be expended under the di-
rection Of the President was subject tc
allotment according to the needs of the
various Executive Departments, as follows:
| Navy Department. S29.723, ,274.22; War
| Department, S1S,944 ,621.6S; State De
partment, S393, ,S6O.S9; Treasury Depart
ment, $4,000; total, 9,231 1928
| These SUMS, while ample for immediate
necessities, would not long suffice to cover
| the expense Of modern warfare. Confer
enceS between the Executive and LegiSla-
| tive authorities resulted in what is known
as the war revenue act to June 13, 1898,
which was estimated to produce, and did
produce, about S10O,OO0,000 additional
revenue.
| BY this act authority was given to the
| Secretary OF the Treasury 10 issue GER
| tificates of Indebtedness payable not ex-
ceeding one year from the date of issue tO
! the amount Of SlOO,oOO.OO0. II did not
| become necessary to resort 10 the issue OF
| these certificates, but the provision was
and still remains Il wholesome safeguard
for tine National Treasury i'll case of an
emergency.
BY the same act the Secretary Of the
| Treasury was also authorized to borrow
on the credit of the United States $780,
| 600, 900, or so much thereof as might be
necessary to defray expenses authorized
| ON account of the war. and to issue bonds
| therefor in denominations Of $2G or some
multiple of that sum, redeemablc in coin at
| the pleasure of the United States after
10 years from the date Of their issue, and
payable 20 Years from such date, bearing
interest payable quarterly in coin at the
rate Of three per cent. per annum. The
bonds were to be offered ut par as popu-
lar loan, the subscriptions of individuals
to he first accepted, and subscriptions fol-
the lowest amounts to be first allotted.
Under the authority given a loan OF
S200,000,000 was offered to the people. Ii
was Instantly success. Subscriptions
poured in from every State and Territory
in the Union. The loan was closed july
Ia, subscriptions having been received
under the regulations established by the
Secretary of the Treasury, for 81 days.
The strength Of the National finances
and the magnificent resources of the coun-
try never received better demonstration
than when on closing the books it was as
certained the offerings amounted to al
most fourteen hundred millions.
1t was the first time the United States
had ever disposed Of its bonds in time of
war at interest rates so low as three per
cent. The ease with which the new reve-
nue. law was put into operation and the
facility with which so large "a sum was
raised by borrowing find their counter
parts only in the rapid and complete sue
cess of the naval and military operations
of the war. With the National credit so
apparent and such a display OF abundant
resources, commerce and the industries of
the country suffered not the least en-
barrassment. In fact, the returning i'm
pulse of prosperity was not for a moment
retarded, but continued uninterruptedly to
spread beneficence over the whole land