The Cordova daily times. [volume] (Cordova, Alaska) 1914-1947, 1918-08-22
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w AotilANh loN, aug. E-.-hl a
time when Americans are thinking in
war terms of billions OF dollars which
must be raised by domestic loans and
taxation it is interesting to examine
the methods employed to finance the
dependence.
The total cost of the Revolution.
individual states. has been estimated
at about 100000 a good deal less
than one days cost of the present
war. The sum is truly insignificant
as compared with the $4,000 900 900
which will be required to finance
Americas share of the present world
war during the coming year.
The thirteen colonies were certainly
as unprepared to strike a decisive
blow for freedom as any country pos
sibly could be- and the people handi-
capped themselves at the very out
set by denying to congress the power
OF levying and collecting taxes which
would have facilitated the raising of
war revenues.
The Colonials could not bring them
selves to the point of giving what they
considered too much power to a linn
tied group OF men representing cen
tralized government, and while con
gress could enact Legislation for an
army and navy, it could do no more
than make suggestions to the various
states regarding the manner in which
these fighting forces were to be main
tanned As a result there was great
amount of governmental confusion,
and while at least three systems Of
raising revenue were suggested. there
was no definite plan as TO the way in
which these methods were to be ad
justed to one another.
Greatest reliance was placed at first
upon the issue OF bills of credit; some
foreign loans we're negotiated do
nestle loans were made and nomi-
nal sum was realized through taxes
levied by the states. The bills OF
credit. however. rested upon what
proved to be an unsound basis
Within a week after the battle of
civ for
an issue of $2.OOO.O00 in credit bills
and the amount to be redeemed be
tween 1873 and 1882 was carefully
apportioned among the colonies
Other issues followed. the total issue
being about $24l ,520,7SO, but at no
time was that amount In circulation.
and seldom was 1t acceptable at face
value. In 1873 depreciation became
very marked, and from January to
May OF that year the value of the
bills varied from 20 to l to 3Sl2 to l.
The domestic loans were more sue
cessful. although, with the exception
of one small loan for the purchase of
gunpowder in June, l775, these were
not authorized until October, ITS,
nearly year and a half after the
beginning OF the Revolution. The
failure of the bills of credit and the
paucity of the revenue being secured
! through taxation led congress to au-
thorize the borrowing of S5,00O.O0O
at the rate of per cent. The lend
ers received indented certificates
which may rightfully be considered
the forerunners of the Liberty bonds.
1t was found necessary at a later
period to raise the interest rate to
E per cent, but through four loans the
amount realized was only $3.7S7.00O.
In September l7T7, the American en-
voys secured the first loan from
France. and that resulted in such a
stimulation of the domestic loans that
from that time until the loan offices
were closed s7.6s40OO in specie was
subscribed.