The evening herald. (Klamath Falls, Or.) 1906-1942, 1918-08-15
COSTS
COMPARED WITH
REVOLUTION

which must be raised by domestl,
loans and taxation Il II interesting
10 examine the methods employed "a
finance the first American war---tht
War OF independence.
The total cost Of the Revolution
not including the expenditures Of the
Individual states. has been estimated
at about $4,000. 900. a good deal
less than one days cost Of the pres
cnt war. The sum ID truly insignia
cant as compared with the S2%.Ooo,'
100000 which will be required to
finance Americas share Of the pres
ent world war during tho coming
year.
The thirteen colonies were certain.
" a. unprepared to strike = decisive
blow for freedom ~ any country pos.
sibly could be. and the people. han.
dicapped themselves at the very out.
set. by denying to congress the pow.
er Of levyihs and collecting taxes
which would have facilitated the
raising Of war revenue.
The colonists could not bring
themselves to the point OF giving
what they considered too much pow.
er to q limited group OF men repre-.
senting centralized government. and
while the congress could enact legis-
lation for an army and navy. Il could
do no mere than make suggestions
to the various states regarding the
manner In which these fighting
forces were to be maintained. Az u
result. there was . great amount Of
governmental confusion. and while
dt least three systems Of raising rev.
enue were suggested. there was no
definite plan - to the way In which
these methods we're to be adjusted TO
one another.
Greatest reliance was placed at
first upon the issue OF bills Of credit:
some foreign loans were negotiated:
domestic loans were made and .
nominal sum was realised thru taxes
levied BY the states. The bills Of ere.
dit. however. rested upon what prov.
cd to be on unsound basis.
Within . week after the battle Of
Bunker HIN authority was given for
an issue Of $4,000. 900 In credit bills.
and the amount to be redeemd be-
tween 1879 and l7ss was carefully
apportioned among the colonies.
Other issues followed. the total Issue
being about 43%l.553.7s0. but at no
time was that amount In circulation
and seldom wss'it acceptable At face
value. In l77s depreciation be.
came very marked and from January
10 May Of that year. the value Of the
bills varied from 20 to one to 3s and
a half to one.
The domestic loans were more sue.
cessful. altho, with the exception OF
one small loan for the purchase of
gun powder In l77S. these were not
authorised until October. l77s. near.
" . year and . half after the be-
ginning OF the Revolution. The fail.
urs Of the bills Of credit and the
paucity Of the revenue being se.
cured thro taration. led congress to
authorize the borrowing Of 35.0OO..
900 at the rate Of four per cent. Tho
lenders received indented certificates
which may rightfully be considered
the forerunnsrs OF tho Liberty Bond.
II was found necessary at a later
period TO raise the interest rate to
six per cent. but thru four loans the
amount realised was only e3.787.-
900. In September. l777. the Amer.
lean ENJOYS secured the first loan
from France. and that resulted in
such q stimulation OF the domestic
loans that from that time until the
loan offices were closed. S7.684, 900
In specie was subscribed.
The foreign loans obtained by the
struggling colonies during their war
for independence are particularly In.
tsresting at the present time when
the United States Il making such tire.
mendous loans to the various Allied
countries. Thru Benjamin Franklin.
Gouvenour Morris and others. funds
were obtained either In loans or sub.
sidies from the governments OF
France and Spain and from private
bankers In Holland. France granted
subsidiss OF 100000 Mvres In l777
and 100000 livrss In 1874. In all.
these sums. which may re regarded
as gifts. amounted TO 3l.s96.60O.
At the beginning Of 1854. 10 years
after the declaration Of independence