Amador ledger., 1905-11-10
HOW UNCLE SAM
PAYS HIS DEBTS
By HON. ELLIS H. ROBBERS
formerly Treasurer of the United statos)

Why should Uncle Sam, rich as ne
is, be III dent at all?
1t cost large sum to set up for
himself, even if he did fail to pay
some OF the continental currency
issued to carry on the Revolution.
He had to defend the frontiers from
Indians, and to protect sailors rights
on high seas by the war of 1872. To
keep his states together strained his
muscles and his resources, and the
Civil War closed with debt on his
shoulders monstrous in its magnitude,
and with burden of pensions to be
measured by the benefcenee of the
triumph.
Besides, he bought land, vast en-
pire from France, some from Mexico
besides spoils of war, Alaska from
Russia, and Florida, Porto Rico and
the Philippines from Spain. Nor
was Hawaii annexed without expense.
He lost money by depositing funds
with the states. He recovered with
interest the credits he advanced tc
the Pacific railroads, and now he is
on the Central American isthmus,
starting in as a canal builder on g
grand scale. The years have beer
few in which he has let his outlay
run ahead of his income, aud these,
with rare exceptions, were during
war times.
When he first started business fol
himself under the Constitution, in
l7o9, Uncle Sam assumed a debt oil
ST., ,060, sos for the cost of the Revo.
luton, and he had not cent in the
treasury. Necessity compelled him
TO borrow at once for current use,
so that he owed in 1871 SIS, 463, ATT.
This burden was reduced to S45, 2O9, TBS
IN 1872, before the second war witt
Great Britain. BY 1916 1T had beer
carried up to S2l7, 3334, 934. This
whole debt was wiped out by 1886
when it stood at the nominal figures
of S37, ,5l3 There was gradual in
crease to s32, 742, ,922 in 1843.
WHAT THE WARS COST.
The war with Mexico soon came
and the figures with fluctuations raj
as high as S68, 304, 1856 in 1851. Oul
maximum net Indebtedness was lifted
by the Civil War to 81, 756, 431, ,571 il
August, 1865.
Then reductions were made year by
year with occasional variations, 81
that the amount, less cash in treasury
was 81, 175, 16S, 675 in 1887, and 1888,
969, 475.75 in 1898. A period of ad
dition followed, and before the wa
with Spain, in April, 1898, the figure
became LOIS, 432, 652. For that wa
a loan OF $500, 1000, 900 was Issued
which raised the debt, June 80, 1899
to 81, 155, 800, 235. By payments thi
soon began to grow less, and June 30
1903, 1t was 1909, lat, 625.
These formidable figures prov,
that Uncle Sam does actually pay hi
debts. He had practically settled il
full all his accounts up to 1886. BY
1891 he had Cancelled billion ano
three-quarters of the gigantic expend
itures for the Civil War. The echoe!
of the guns at Santiago and ManlIt
had not ceased before he began tt
buy his own bonds in advance o.
maturity. He is ready to pay tor the
Panama Canal and the equities tC
Columbia out of his savings, and tC
go on with the great work of connect
ing the two oceans before he borrows
an additional dollar.
Great Britain has at different
periods made temporary reductions
in It's Indebtedness, only to add agair
to the magnitude. France heroically
Cancelled its War indemnity to Ger.
many. Yet no one of the govern.
ments of the Old World expects evel
to balance it's books free from debt.
The financial obligations of every one
of them are planned to be perpetual.
This must be so, because the debt oi
European countries bear so large 6
ratio to their wealth and populations.
For each of its Inhabitants France
in 1908 carried a debt of Sl51. 60
Spain of Sl0S. 81; the United King.
dom of S9G.29; Russia in Europe,
S3l. 30; Austria Hungary, S24. 80; Ger.
many, because France paid the cost
of the war of 1870, SlO.51. Of British
colonies, Australia owes $3.50 for each
person, and Canada $50. By contrast
the United States is indebted only
Sl1.38 for each person.
Measured by the estimated wol th
of its property, the debt of France
was l1.9 per cent. of its wealth; OF
Germany, 7.73 per cent. Russia, TO- 4
per cent; of the United Kingdom,
6.25; of Australia, 4. Is per cent, and
of Canada, 5.09 per cent; but the
ratio of the debt of the United States