The Cordova daily times., 1917-06-06
tBy United Press)

WASHINGTON, June 6. - National credit depends very much upon two factors, national resources and the strength of the government.
 nation might possess overwhelm- ing resources and still suffer from bad credit, because the weakness of its government would not make it possible for that nation to levy upon it's resources to meet it's obligations.
 The American Revolution is an ex- ample of sufficient resources but in ability to collect. Most of the func- tions of government were possessed by the states at the beginning of the Revolutionary war Each state issued its own money and collected it's own taxes. The Continental Congress was a voluntary advisory body, which grew up to meet the eXigency
 The story of the attempt of the thir- teen colonies to finance their rebel lion against Great Britain is one of the tragic chapters of all history The mental tortures suffered by the men who were bearing the responsibility of government compared with the physical tOrtures endured by the pat riots at Valley Forge. Nearly every plan of money raising devised by human brain was attempt. ed by the colonists and with only par, tial success.
 There are four recognized methods of raising money for warfare. These are the sale of bonds, the issuance of paper money, direct and indirect taxation, and the confiscation of pro- perty and wealth. The colonies tried every plan. During the first year of the war they issued six million dollars Of paper money, asking each colony to redeem certain portion of this is. sue. The federal government could not command the states to pay, it merely requested, and some of them paid and some of them did not.
 Early in 1776 four million dollars of paper money was issued and paper money came so plentiful that it was worth only about one-seventh of it's face value. By the end of 1776 more than twenty millions had been issued.
 In July, 1775, the colonies attempted a five million dollar loan at per cent. failed because capitalists could get 6 per cent from private borrowers. In 1777 big lottery was attempted, IO0,- 900 tickets being sold to produce gov ernment revenue, but this did not sue ceed as we'll as was expected During ] 1777 thirteen million dollars more of paper money was issued. The Conti- | mental Congress, desperate, asked the | states to raise money by taxation and | lend it to the government at 6 per cent. The property of British Loyal ists in the colonies was confiscated, and used to help carry on the war. Then when the colonies were almost at the end of their financial string. came the French alliance, and France bolstered up American credit a little bit by guaranteeing the interest on the debt. When France joined Ameri- ca fifty-five million dollars of paper money had been issued.
 By the end of 1779 the total issue of paper money had reached $200, ,0O0,- 900, and it had lost its purchasing power. The money would not even be accepted for furnishing supplies to Washington's army, so congress as- sessed a certain amount of supplies against each of the states, Virginia being assessed 10000 barrels of h. dian corn.
 It was Robert Morris, q Philadelphia banker. who finally devised the fin ancil system which saw the colonies through. He created the Bank of North America to redeem the notes in specie payments. He was material ly aided by reason of the better feel ing which prevailed over the chance