The Morgan City daily review. (Morgan City, La.) 1916-1920, 1917-06-08
THE LIBERTY LOAN OF THE
AMERICAN REVOLUTION


One of the most important strug-
giles of the American Revolution did
not take place on the American con-
tinent.
1t was fought out between the d.
plomatic agents of the newly form
ed commonwealth and the bankers
Of France and Holland.
It was comparatively easy to get
men who were willing and able to
carry arms in the fight for liberty.
But is was very difficult to make the
European bankers see the great
need of financial aid of those en-
gagged upon the hopeless task of de-
feating the mighty British Empire.
Conditions in the year 1871 were
not difficult from those in the year
1917. Napoleon remarked that war
was q question Of "Money, money
and more money" That was true
when Washington guided his men
against Yorktown. It Is still true
when the Allied Powers are tying to
defeat the Prussian idea Of world
dominion. The golden bullets Of
America will demolish the linden
burg line and will ultimately defeat
the submarine. Shrapnel and dyna-
mite and bombs will play their part
but they would be useless without
the economic driving power which
the riches and the credit of the
American nation have placed at the
disposal of the Allies.
Money talks. And money also
carries trenches.
There are five American patriots
whose lives and letters make inter-
cstlng reading these days of the
Liberty Loan. They are Franklin,
Adams, Lee, Morris and Livingstone
who fought the war for Americas
independence on European soil.
They were brave fighters, thse five.
Often they did not have enough
cash in their pockets to pay their
cwn BOARD bill. But they kept fight
ing :.rd they finally obtained the
foreign loans which carried the
american Revolution to q successful
end and put the weak colonies firm
ly upon their feat as an Independent
and sovereign nation.
It was John Adams in ITO, who
began the negotiations for the first
great Dutch loan. At that time Con-
gress was 50 hard up for ready cash
that it had begun to draw bills Of
exchange for money which had not
yet been obtained. It was left to
their commissioners in Europe to
find the necessary funds. The trea-
son of Arnold and the capture Of
the latest Congressional missionary
together with the discovery of all
papers-they were fished out of the
ocean after he had thrown them
overboard-had made the Dutch fl
nancieTs very skeptical about the
ultimate success Of the colonial up
rising. The surrender Of CORVALLIS
in October Of the next year, how
ever, offset these fears Of ultimate
defeats, and q combination of Dutch
firms ventured to invest five million
guilders in a Congressional loan. In
September of 1772 Congress affirm
ed this loan and at once received a
million and three hundred thousand
guilders, more money in actual cash
than had been seen on the American
shores since the beginning of the
Revolution. The interest on this loan
was five per cent, which was very
low considering that France, Eng
land, and Russia were offering
Dutch bankers double that amount.
The investment, moreover, was still
Of a highly precautions nature, for
Congress, being hopelessly pressed
for funds, drew against this sum
with such rapidity that the entire
five millions were spent before the
last installment had reached the
United States.
During the following years other
Dutch loans followed each other
without interruption. In 1854, when
the American Congress was willing
to pay almost any premium to
maintain the credit Of the new ma
ton, another loan of two million
guilders at six per cent. was placed
with several Amsterdam banking
firms. In 1887 the third loan fol-
lowed. Then in rapid succession
came the loans Of 1888, 1890, Mach
September, and December Of the
year 1871, the loans Of 1892, 1893,
and 1874. These loans, indeed, be-
came an annual expense Of the new
and unstable Congressional govern
yrnonf ~roa mold fnr ~r,:xh n,.A.l