The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-05

Arrangements by the Government
last week to bring out the largest
loan ever issued by any nation we're
announced on the day that the Treas
ury issued checks In payment OF $685.
945,0 900 bonds still outstanding Of the
United States Governments famous 8
per cent. loan Of twenty years ago,
issued to finance the expenses of the
Spanish American war. That loan
was applied for by $4,000 subscribers,
which made 1t a distinctly popular
loan. The Government offered $780,
100000 of the bonds, but public inter-
est in the loan was SO great as to
elicit $1,000, 100000 subscriptions, the
bonds advancing to a 8 per cent. pre-
MUM within three months. OF $780,
792,6eo of these bonds actually issued.
1892, 449,9OO were subsequently re-
funded into the 2 per cent consols Of
1880. SO that when the issue matured
last Thursday only $47,140.760 OF the
bonds was in the hands of investors,
$16,S04,240 being pledged BY the banks
with the Treasury as security for
circulation and Government deposits.
Mounting Costs of War.
These "reminiscences are interesting
as indicating how the burdens Of
financing modern war have in
creased within two decades. Although
our war with Spain lasted only four
Notwithstanding in April. 1898, and
ending in August--wheat advanced 10
$1.S5 a bushel at Chicago, and because
Of record harvest just after a fear
OF European crop failure our excess
Of exports over imports reached $615,-
100000. This caused n sharp rise In
commodity prices here, with excited
speculation in the stock market and
genuine revival in trade. The cost
OF the Spanish war was in
significant and the OUTLAWS by Great
Britain for the Boer war, which be-
gan year after our Spanish
American war-lasting from October
1899, to May, 1902--averaged only ST.
100000 a day. There were no air
planes to provide. no 5000 mile long
transport service and no subma riue
menace to combat
Changes of Twenty Years.
The cost of financing a war in those
days. therefore, was about like financ.
Ing prize fight as compared with
the stupendous task Of paying for a
world struggle in which twenty-five
Governments are engaged. The lead
ing participants in this conflict have
already piled up an Indebtedness equal
to nearly one-third OF their total ma
tional wealth, and economists have cal.
culated that the belligerent Govern.
| ments have to spend more than one
million dollars every fifteen minute.
to carry on the present conflict. Thi:
Is what four years OF warfare ma.
| brought the nations to. and the cues.
ton is: How much higher can the
mounting costs go without Gripping
the be!ligerents that are supporting
such terrific enterprise?
Financial Exhaustion"
| This query no one can answer, fo
the reason that the theory of "finan
cial exhaustion" as a controlling fac
tor in the struggle was abandone,
| long ago by the economists who II
| 1914 declared that the nations en-
gagged would not be able to stand tn,
financial strain longer than few
months They have stood II with les
difficulty than any one supposed the,
could and are arranging greater loan
than ever, with new tax burdens g
| onerous as to force a complete read
/ justment Of living conditions. TIL
| United States has achieved create
| success than any other belligerent II
placing it's bonds with actual investors
and Notwithstanding the decline il
price that has taken place the pros
i poets are for n broader distribution
of the bonds during the fourth Lib
erty Loan canvass than on the occa
sion OF last April's Offering, whei
10000 900 people took the s4l70.019.
$50 loan then marketed. That wa
in every respect the most successful
war loan ever issued by any Govern
ment.
The Coming Loan.
The people are ready for the mex
loan and the probability is that I'll
canvass which begins seven week
hence will be the most extensive We
attempted in the history Of great wa
loan offerings. The United State
Treasury started August with a work
ing balance OF sl,750,000, 900, or Jus
| about enough to cover singl
months expenses The July outlay
OF s1,60S,2S2 900 were the heavies
made in any month since the war be