Evening journal., 1917-06-01
BY FRANK X. WILSON
Federal Farm Loan Bureau United
States Treasury Donartmcnt.

States Treasury Department
(Written for The United Press)
From the Liberty Loan, 1917, Publicity
Bureau.
WASHINGTON, June 1.-National
credit depends very much upon two
factors. national resources ana the
strength Of the government.
A nation might possess overwhelm-
ing resources and still suher IRON
bad credit, because the weakness OF
its government would not make 1t pos
sible for that nation TO levy upon It's
resources to meet its obligations.
The American Revolution is an eX-
ample Of sufficient resources. nut IN
ability 10 collect. Most Of the func-
tions OF government were possessed
by tho States az the beginning Of the
Revolutionary War Each state is
sued its own money and collected IT'S
own taxes The Continental Con-
gress was a voluntary advisory body
which grew up to meet the eAlsehcy.
The story OF the attempt Of the
thirteen colonies TO finance their re-
bellion against Great Britain is one
OF the tragic chapters OF all history.
The mental tortures suffered by the
men who were bearing the RESPONSE
bilitv of government compared Win
the physical tortures endured by Ine nc
patriots at Valley fOrge. Nearly
every plan OF money raising devised
bv human brain was attempted by the
colonists and with only partial sue
cess. .,o.t,ode
Of raising money for warfare Ihese
are the sale OF bonds, the issuance Oh
uaper money. direct and indirect TAX
ation and the conhscation Of proper
~ and wealth The colonies trleu
every plan. During the first year OF
the war they issued six million ooi'
lars of baper money asking eacn col.
onv TO redeem a certain portion OF
This issue The Federal Government
could not command the states 10 pay :
A merely requested and some OF them
paid and some did not.
Fariv i'm 1875 four million dollars OF
naner money was issued and paper
money became so plentiful that ],
was worth only about one seventh ol
as face value BY end Of 1916 more
tban twenty millions had been issued
nm Julv 1775, the colonies az
+omnted five million dollar loan a'
4 per cent. failed because capl.alls', 7,
could get 6 per cent. from prleess
borrowers. In i777 a big lottery We VIZ
attempted, 100000 tickets oelhs S%o'u %
TO produce government revenue pul
this did not succeed as wen as Ne' n
expected. During lllf thirteen III. nlli
lion dollars more of paper money wa
issued The Continental Congress
desperate asked the states 10 lais,
money by taxation and lend u 10 ln'
government at per cent The prop
ertv of British Loyalists in the col
onies was confscated, and used "a
carry on the war. Then when th'
colonies were almost at the END o.
their financial string, came IN,
French alliance. and France holsteree
nm American credit a little bit d,
auaranteeing the interest on th'
debt When France Joined Americ'
fftv million dollars Of paper mohe'
Bv Inc end of 1779 the total issu'
Of paper money had reached SzoO
ooo oO0 and it had r. its purchasinl
nower The money sould not eNel
be accented for furnishing supplies U
xyashinrton's army. so Congress as
eoeeed n certain amount OF supphe g
against each OF the states Nirsinl
beinr assessed 10000 barrels OF II
dian corn .,,-,
n was Robert Morris, Philade
mia banker. who finally devised th
finance system which saw the co
onies through. He created the Ban
Of North America TO redeem notes y
snecie payments He was materialI
AIDED bv reason Of the better ieeiin
which prevailed over the chance o
victory and the consequently ei
HANGED credit of the colonies.
American credit was desperatei
low durinc the war of 1912 The groa
enancier Albert Gallatin was able {
een onlv about ouehalf OF the frs
eleven million dollar loan at pc
cent The second loan of sixteen mi