Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1917-02-10
Our Last War Loan
Wall Street Journal =

The present international crisis, with the pos
sbility OF our entering upon more or less extern
s1ve military operations and raising the neces-
sary funds through war loans, directs attention
to the public debt Of the United States. For
country of such enormous wealth the fact that
the nterest-bearing debt is no more than S97l,-
100000 bears eloquent testimony to the potential
resources the United States throw into the
balance OF the present conflict in Europe. Our
public debt pales into insignhcance alongside OF
the colossal debts of the great belligerent powers
The present revenue bill, under the prepared.
ness measure, contemplates bond issues that will
increase our national debt by from $300,00O000 to
S40O,0O0,000 Should we enter the European war
as an active participant there is no saying what
the further addition to the debt will amount to-
There is little doubt that our government could
come into the money market, in the present state
Of the general patriotism, and raise several hun
dred millions of dollars before the rates for money
became seriously affected.
Our last war loan was made on the occasion of
the Spanish war in 1898. That was highly popu-
lar loan and it may be of interest at this time to
recall the public participation on that occasion.
AS at present would be the case, the war IN 1873
involved the government in expenditures which
could not be met by the revenues then being re-
ceived. Accordingly, the war revenue act of
June IS, besides providing for increased revenues,
authorized an issue of bonds to the sum of $780,
OF as much IHefeOI as Dc necessary.
1t was per cent issue. The law stated "that
the bonds authorized by this section shall be first
offered at par as popular loan under such regu-
latons prescribed by the secretary Of the treasury
as will give opportunity to the citizens Of the
United States to participate IN the subscriptions
to such loan; and in alloting said bonds the sew
eral subscriptions of individuals shall be first
accepted, and the subscriptions for the lowest
amount shall be first allotted"
In furtherance of this idea to make the loan
popular, the bonds were issued as low as $40 de-
nominations or nultiples thereof. The issue
was redeemabie after ten years and payable after
twenty years
Only $200,00oyOO0 Of these bonds were offered
on June 49, 1898. Every effort was made to give
the public an opportunity for subscription. Every
newspaper in the United States was supplied
with information relative to the issue, which,
nently displayed free of charge. Circulars and
blank forms for subscription were supplied to
more than 1900 money order postofices, to
every express office and to all the banks. A
period of thirty-one days was allowed for the
receipt of subscriptions.
The number of subscriptions received was
31O,llo, applying for an aggregate of more than
$l,5O0000OOO The most popular subscription
was for $500 bonds, of which the number was
1858 There were II ,43 subscriptions for less
than 500 and 1924 subscriptions ranging from
500 to $3.50 each. Subscriptions for more than
$4,000 numbered 1886 The total amount of
bonds issued under this act was $l98,792,660 I'm
der the terms of their issue, these bonds were
redeemable any time after August l, 1908, and are
payable next year. on August l. OF the original
amount issued $l32,449,O00 have been refunded
into the per cent consols at 1880 and $23 800
have been purchased for the sinking fund and
cancelled, and $500 have otherwise been pur-
chased and cancelled, leaving outstanding at the
present time $63,o4s,46O