The Barre daily times. (Barre, Vt.) 1897-1959, 1918-08-14
FINANCING WAR
0FINDEPENDENCE
Total Cost of the Revolution
Has Been Estimated
at $80,O0O,000
BILLS OF CREDIT
PROVED UNSOUND
Domestic Loans Were More
Successful-Our For
eign Loans

Washington, Aug. l4.-At time wher
Americans are thinking in war terms Of
billions of dollars which must be raised
by domestic loans and taxation it is in
teresting to examine the methods EN-
ployed to finance the first American wal
the War of independence.
The total cost of the Revolution, not
including the expenditures of the individ-
ual states, has been estimated at about
$S0,Q00,000, good deal less than one
days cost of the present war. The sum
is truly insignificant as compared with
the 1900, 100000 which will be required
to finance Americas share of the present
world war during the coming year.
| The 10 colonies were certainly as I'M
prepared to strike decisive blow for
freedom as any country possibly could be-
and the people, handicapped themselves
at the very outset, by denying to Con-
gress the power of levying and collecting
taxes which would have facilitated the
raising of war revenue.
The colonials could not bring them
selves to the point of giving what they
considered too much power to limited
group of men representing centralized
government, and while the Congress
could enact legislation for an army and
navy, it could do no more than make
suggestions to the various states regard
ing the manner in which these fighting
forces we're to be maintained. As re-
suit, there was a great amount of gov
ernmental confusion, and while at least
three systems of raising revenue were
suggested, there was no definite plan as
to the way in which these methods were
to be adjusted to 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
realized through taxes levied by the
states. The bills of credit, however
rested upon what proved to be an un-
sound basis.
Within week after the battle OF
Bunker hill, authority was given for an
issue of 100000 in credit bills, and
the amount to be redeemed between l77G
and 1882 was carefully apportioned
among the colonies. Other issues fol
lowed, the total issue being about $24l,
552, $50, but at no time was that amount
in circulation and seldom was it accept
able at face value. In 1879 depreciation
became very marked and from January
to May of that year, the value of the
bills varied from 20 to to 3Sia to /.
The domestic loans were more success
full, although, with the exception of one
small loan for the purchase of gun pow.
der in June, l775; these were not au.
thorized until October, l776, nearly q
year and half after the beginning Of
the Revolution. The failure OF the bills
of credit and the paucity of the revenue
being secured through taxation, led Con.
gress to authorize the borrowing of So.
100000 at the rate of per cent The
lenders received indented certificates
which may rightfully be considered the
forerunners OF the Liberty bonds. II
was found necessary at later period to
raise the interest rate to per cent, but
through four loans the amount realized
was only $3,7s7,O00. In September, I777,
the American ENJOYS secured the first
loan from France, and that resulted in
such stimulation of the domestic loans,
that from that time until the loan offices
were closed, S7,6S4,0OO in specie was sub.
scribed.
The foreign loans obtained by the
struggling colonies during their war for
independence are particularly interesting
at the present time when the United
States is making such tremendous loans
to the various allied countries. Through
Benjamin Franklin, Gouveneur Morris
and others funds were obtained either in
loans or subsidies from the governments
of France and Spain and from private
bankers in Holland. France granted sub
sides Of 100000 livres in l777 and
100000 livres in ISL In all, these
sums, which may be regarded as gifts,
amounted to Sl,996,500.
The United States borrowed from
-