The Republican journal., 1918-10-03
Fighting Fourth Liberty Loan
Facts and Figures
BOND PRICE VARIATIONS

On the basis of the relation pe-
tween national Indebtedness ana
wealth at the time of the ClVh war
the United States Government sho un
be able to float loan OF $25,ooo,ooo'-
600 with every prospect OF It's FORMING
a safe. sound and thoroughly oeslra-
bic investment for the individual, an
authority on the subject, E. Kerr, sta-
.istical expert, said as this country
was entering the great war.
On the basis on which Great BTU
ain and France were borro"lhs' Inc
United States might with comparative
safety borrow up to $3S,ooo'oOo'uoo,
this s.atistician said, for The Unlteo
States has proved that it can easily
and rapidly pay off a considerable DEBT,
and it is still a country with magnl-
ficent opportunities for development
and the production of few wealth.,
After being at war year and .
half with its always excessive first
cost, the war indebtedness OF the coun-
try as expressed in Liberty Loans
and War Savings stamps 10 Tess IMAM
fifteen billion dollars The new LID
erty Loan, the Fighting Fourth, there
fore, offers a good and safe invest
ment to the loyal as well as an OPP
portunity to give practical expression
to their patriotism.
In the entire history OF govern
ment loans, and i. goes back through
the centuries. there are very Few oc-
casions on which the interest on the
bonds of respon ole governments mas
been defaulted, repudiated or fund
ed. This has happened only in the case
of new and untried governments OF
as result of anarchy and repudlat1on
of the debts then incurred by the re-
sponsible incoming government. Even
then the reputation has usually been
temporary. War is usually followed by
a period of expansion and Invention
in the defeated as we'll as in the VIC
torious country. Taking past wars
as a precedent, the present war, be-
ing on a larger scale han any which
have preceded it, should have larger
results.
When the present form of govern
ment came into existence in this
country in 1890 the total indebtedness
of the United States exclusive Of pa
per currency was $52,788,722 and state
uGUtS dulOEuLiuS W ofOl 10
were assumed by the federal govern
ment The foreign debt of 10 million
with an interest rate of $50 was re-
paid by 1875. The domestic debt al
so was funded and gradually repaid,
the interest rate being reduced 20
SCI, 5 1-2%, 4 12To and go in various
ways.
To the total Indebtedness of APP
proximately SO million in 1900 was
added s11,250,00O, the purchase price
of Louisiana but more than half had
been paid when the country entered
into the war Of 1872. In 1911 an at
tempt was made 20 introduce United
States bonds on the London market
The $50 were quoted at IS to 70.H,
the so a. 1O1 and 1902. Interrupted
bv the War of 1912 a second attempt
was made in 1916. The $50 were then
quoted at 81 and the go at 81 IL and
80. These same bonds were quoted
lin Philadelphia at the same time at
81 and 90. A $50 loan put out in
1913 was sold at SO IA.
Although the war added about ~
million to the public debt the floating
debt had been reduced to such small
proportions by 1917 that payment in.o
the sinking fund recommended. by
1886 so much had been paid off that
,2S million surplus revenue was DIS
ltributed among the states. Although
lit added approximately 40 million to
the public debt the Mexican war did
no. interrupt this prosperity. A SO
loan which partially financed it was
ISSUED at par.
- oil al hnin0 9d-
,iusted the Civil War is stated to nave
cost the Government three billion
dollars At it's maximum IN 1860 the
national debt was S2756, 431, 81. Up
to the present war the Civil war was
one of the most expensive and ex-
haustive of all history ye- the last
war loan bond was redeemed AZ years
later, In 1907. This was feat re-
garded by Europe as astounding.
! The most popular loan of that war
was the 60a. 5-20-year of 1862 OF
which s515, 100000 was placed at par.
Refunding operations from 1870 %
1877 reduo ed the interest rate 20 $50,
to 1 1-2%o and then to 4ed. All is
sues were at not less than par.
The prices of the IS of 1881 were
as follows during the war; 1861. from
s4 ~ to "a; 1852, from 81 IL to
1O7 II. 1868. from 81 ga to ITO 81;
1864. from 1902 to 118; 1865 from
10s IL to 112 3-8
! Just previous to the Spanish war
the national debt amounted to some
thing over 1886, 100000. At the end
of the war this had mounted to
$1.155,320,235. A $20O,0O0,000 $50
war loan offered at par was sub
scribed seven times over and went
to 106 inside Of three months. me
deb was steadily reduced during the
nine years following the war and
bonds for the Panama Canal were Is
sued at or love par, showing the
high credit standing of the country.
During this period government secur-
aties rose to a maximum of lSS 81
for the 40 and" 1903 IA for the $50
issued to finance the canal.
Since then there has been no de-
crease, the 1916 net Indebtedness OF
the United States standing at $1,132,-
839. 1875 and having interest rates at 40,
go, 2 1-2% and go. OF the gross
debt 66% was non-interest bearing
and 249s was bearing interest at 30.
GERMAN VIEW OF CHRISTIANITY