The evening leader., 1918-08-14

portloned among the colonies. Other
issues followed, the total issue being
about $241 ,552,780, but at no time
was that amount in circulation and
seldom was it accepted at face value.
In 1779 depreciation became very
marked and from January to May of
that year, the value of the bills varied
from twenty to one to thirty-eight
and ha,f to one
The domestic loans were more sue
cessful, although with the exception
of one small loan for the purchase of
gunpowder in June TITS; these were
not authorized until October 1776,
nearly a year and a,halflafter the be-
ginning of the revolf trees ra
of the bills of credit. ir I
iof the revenue being z sS a
faxation, led congress {u aarif iSlioi aSi the
borrowing of $5,000,000 at the rate of
four per cent. The lenders received
lndented certificates which mar right
fully be considered the forerunners of
the liberty bonds. It was found nee
essafy at a later period to raise the
interest rate to six per cent, but
through four loans the amount receiv-
ed was only S3,787,000. In September
1777, the American ENJOYS 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, ST.
6S4 900 in specie was subscribed.
The foreign loans obtained by the
struggling colonies during their war
for independence are particularly in
teresting at the present time when the
United States is making such tremen-
dous loans to the various allied coun-
tries. Through Benjamin Franklin,
GoWener Morris and others funds
were obtained either in loans or sub
sides from the governments of
France and Spain and from private
bankers in Holland. France granted
subsidies of 100000 livres in 1777
and 100000 livres in 1881 In all,
these sums, which may be regarded as
gifts, amounted to 81, 1896, 500.
The Unitetd States borrowed from
France between 1777 and 1888 the to-
tai sum of s6,352,5oO while Holland
loaned the struggling nation $1,304,-
600 and Spain furnished $174,117-a
total of $7,830,517. Nor must it be
forgotten that France spent at least
S6,000,000 on the army which she sent
to the aid of the colonies.
At the beginning of 17s4-ten years
after the declaration of independence
the Indebtedness of the national
government was $39,323, 1886. This
was divided as follows: Foreign, ST.
931 1856; domestic loan certificates,
S11 ,585. 900; unliquidated certificates
of Indebtedness, S16,70s,0O0; arrears
of interest on domestic debt, $780,
600. These figures are trivial as COM
pared to those representing the war
debt of today, but this Indebtedness
weighed far more heavily upon The
people of that time than the tremen-
dous expenditure of the present does
upon the American public today
1t was no small matter for the colo
malls and their descendants so to shape
the machinery of government that re-
suits could be obtained smoothly and
efficiently. There were many ups and
downs, successes and failures, but the
foundation laid in those trying times
is the foundation upon which the Am
erican financial system rests at the
present time, and it is because of the
solidity of that foundation that the
United States has been enabled to
take such an important part in the
world struggle for democracy.