Every evening, Wilmington daily commercial., 1918-09-12
CIVIL WAR COST j. S.
MORE THAN 3 BILLIONS
Government Often in Sad Need
of Cash; Loans Chase's Favor
itc Money Raising Medium.

Washington, Sept 1.-The Civil War
cost the federal government S3,027, ,7ef,
600 exclusive Of pensions and interest on
the public debt beyond the actual war
period This amount seems small indeed
when compared with the 0,0DO,0 900
n day the United States now is paying
as it's share of the present conflict. Con-
ditions fifty years ago were such that
the people Of that day felt the burden
they were forced 10 carry, to a greater
degree, perhaps, than do the people
Of the present.
There was a demand by the people
during the Civil War period for emergency
taxation and, while a vast amount of
war revenue was raised through that
means, Secretary Chase, head Of the
Treasury Department, pinned his great
est faith To loans,
CHASE FAVORED LOANS.
The loan system inaugurated by
Chase was elaborate and complicated.
Loan followed loan in rapid succession
and they were hoated Mt varying rates
OF interest and over widely separated
/ periods of time In discussing this phase
| Of the nations financial experience,
authoritative writers have found IL
| f't ~ HAthF AAAf1' Hbff'iH hsHtt
four headings (a) Long Term Loans
| fb) Short Term Loans. fc) Non-interest
Loans Id Temporary Indebtedness
| II is impossible IN the brief space at
| hand 10 analyze these completely but
one may gain general idea Of the system
| by hurried survey Of those issues which
attracted the widest attention and made
i the greatest appeal 70 the subscribers.
With the exception Of mn issue Of
$50, 600, 900 of twenty-year bonds bearing
six per cent interest, the loan operations
of 1861 were Of temporary nature,
but in February, 1862, an issue Of $500,
| 100000 was authorized, at six per cent,
redeemable after FIVE years and actually
payable IN twenty years II was provided
however, that they were not 70 be sold
below the market value, : which Secretary
| chase interpreted 10 mean At par, and
| since n majority Of investors we're buying
| bonds merely for the purpose Of selling
them again at n profit, only s23, $50 900
of the issue was sold
TEMPORARY loans REVIVED.
During 1s62-ISs3, after the federal
| army had suffered reverses and money
was badly needed the system of TEN
| p0rary loans was revived and certificates
| of deposit. bearing five per cent interest
were issued They proved popular and
| within month the s25, 900 900 author
lied as limit had been doubled Six
| months later II was increased 10 800
900 900 and by the next year June
| 1861 limit Of $50 000 900 had been
| authorized The premium on precious
| metals caused coins 10 90 almost out oi
circulation. and in their place Congress
| ant horned the use Of stamps That
| medium. inconvenient At best was re-
placed March 3, 1853, by small notes
called fractional currency or "shln plasters
and the $50. 600, 900 worth nf it author
| ized proved effective in replenlshinp
| the treasury
When Congress met in December
1862, il Was confronted by deficit Of
s276. 600. 900 To meet it, series oi
treasury notes totalling 5000, 900 00f
was authorized hut of the amount
only s75 00O. 900 was sold In the mean
time. however the restriction against
selling below par the $500 000, 900 bond
issue. authorized eleven months before
was repealed and Jay Cooke, a New
York banker was engaged 10 dispose
of the bonds on a commission basis
Cooke established agencies Throughout
the country and s4O0 000, 900 Of the
bonds were sold off within year The
| Dian Oh sBtIilE lO0iS tilfDUEA UiOEtAs
and outside the immediate control nt
the government, aroused much antagon
ism and It was abandoned by Chase
in negotiating the next loan
Owing 10 various caucses, Chase
resigned June % 1864 and was succeeded
by William r Fessenden, Of Maine
He had been chairman of the Senate
Finance Committee There was bal
ance on hand of only SIS So 900. IN
terest on the public debt was due, the
pay OF the soldiers was in arrears anC
/ he army expansion meant an lncreast
OF daily expenses ranging from 81 500.
600 to 5000, 900
Fessenden remained in office only
until March 3, 1865. but during thai
time he proved his ability and his courage
He proposed a great national loan o
$500 .000. 900 in the form OF notes pay
able in three years at an interest OF :.
per cent The services OF Jay Cook
were again secured and during IN
latter part OF 1865, $4,000 600 of tn
notes were sold The issue was thel
increased to $500. .000. 900 and Sis,
600. 600 of notes met with ready sale
Fessenden likewise returned 10 the 81
per cent policy on the temporary com
pound notes and these were also eagerl,
taken By the people.