The Barre daily times. (Barre, Vt.) 1897-1959, 1918-08-21
UNITED STATES is
NON-MILITARISTIC
No Better Evidence of Our Lack of Prep
aration for War Was to Be Found
Just Prior to Second War
with England.

Washington, D. O.. Aug, 2I-The Unit.
ed States has ever been non-militarist-
ic nation, and no better evidence Of that
fact is to be found then in the condi-
ton existing just prior to the second
war with England.
Although it had been known for a long
time that another war was possible, ev-
cry effort was made to reduce the size
of the army and navy, and prepared
ness measures were discouraged. Thi:
course arose largely from the influence
OF Secretary Gallatin, who had succeeded
Alexander Hamilton as head of the
treasury. Gallatin needed to reduce the
running expenses of the government. We
hoped that by this means the people
might be relieyd Of large share Of the
taxation which had been placed upon
them
Gallatin succeeded in curtailing public
expenses TO such degree that the bud,
get for 1902, 1903 and 1904 called fol-
an expenditure Of only $4,000,000, as
compared with the $7,500000 spent in
1900.
John Randolph, chairman Of the com
mittee on ways and means, was an enc
my to internal taxation and through his
influence a repeal act was passed which
overthrow a great part of the tax sys-
tenn, which had been inaugurated by
Alexander Hamilton.
Then came the purchase of the Louis
lana territory which cost Sl5,000,o00,
and to meet this outlay GalIatin pro-
posed the issue of $ll 100000 worth
Of new bonds bearing six per cent inter
est. Owing to the war in Europe, Amer
lean commerce was fourishiug, export
trade was brisk and prices were high.
As a result, the success of the loan was
far greater than had been expected.
The brush with Tripoli, however, made
additional revenue a matter of neees-
sity, but instead of restoring the ex-
else duties which had formerly pre-.
vailed, Congress on March 20, 1904, an.
thorized an addition Of two and one half
per cent on all imported articles subject
to ad valorem duty and an additional
ten per cent on all goods imported in
foreign vessels. The proceeds of this
act were known as the Mediterranean
fund and was used for the protection Of
the commerce. and seamen of the Unit
ed States against the barbary powers
and was TO be levied until a treaty was
made.
II was not until 1907, when war
threatened that President jefferson
much against his will, agreed TO an in.
crease Of expenditures for national de-
Tense AT the same time he entered
upon the alternate policies of non-im-
portation Of manufactured goods and OF
forbidding shipping to leave American
ports This completely upset the Gus
toms receipts which fell from Sl6,300000
to 81 100000 and at the same time ex-
penditures for war increased from ST.
800. 600 in 1907 to $4,000 900 in 1909
Fertilization Of ports and harbors was
| FASTENED, gun boats were purchased and
the regular army was enlarged.
Since affairs had reduced themselves
to greatly decreased revenues and great
ly increasd expenditures Secretary Gal.
latin confronted a deficit in the budget
which amounted TO 81 100000 This was
provided far, however, by a balance
which remained on hand in the treasury,
while in 1909 the embargo act was re-
pealed and commerce was resumed with
great vigor In 1910 the customs yield
cd SS,500O00 and in 1917 this amount
was increased 20 $l3,30OO00. The ap.
preparation for the army and navy was
reduced and immediate financial danger
was safely tided over.
During this decade there had been a
remarkable reduction Of the public debt
which, between 1901 and 1871 was cut
down by S3s,O00,000. The foreign debt,
which included the stocks Of 1895 and
the loans Of 1889 and 1900, was wiped
out and no further recourse was made to
temporary loan.
The year Of 1911 was memorable in
the financial history Of the United
States, for it marked the collapse Of
the United States bank The directors
Of the institution petitioned Congress
for a renewal Of their charter. Secretary
Gallatin, reported in favor Of it, with
certain recommendations for changes in
the banks policy Among them was
that the bank be required to pay inter-
est on all government deposits above
SO 100000 and also that it should loan
to the government at any time sum
not to exceed sixty per cent of its CAPT
tai.
Other influences were at work, how
ever, and vigorous opposition to the re.
newal Of the banks charter was mani
tested in Congress. The constitutional
ty Of the bank was questioned and 1t
was denounced as can undemocratic,
political institution" The bill for re-
newal Of its charter was lost in the SEN
ate February IL, 1871, when George
Clinton, vice president of the United
States, cast the deciding vote against it.
It then became necessary for the gov
eminent to turn to local banks for the
custody of its funds, and twenty -one OF
these institutions, located for the most
part in the principal parts of entry, were
employed for this purpose.
The trouble between England and the
United States had been growing all OF
that time, and despite lack of prepare,
tion on the part of the new country
war was declared in June, 1872, and
4 - Ga