The Bridgeport times and evening farmer., 1918-09-05


 actual war period. This amount seems small indeed, when compared with the $5O,OOO,0O0 a day the United States now is paying as its share of the present conflict Conditions 50 years ago were such that the people of that day felt the burden they were forced to carry. to a greater degree, perhaps, than do the people of the present.
 There was a demand by the people during the Civil War period for emer- gency taxation and, while a vast amount of war revenue was raised through that means, Secretary Chase, head of the Treasury Department, pinned his greatest faith to loans.
 The loan system inaugurated by Chase was elaborate and complicated. Loan followed loan in rapid success sion and they were floated at varying rates of interest and over widely sep arated periods of time, In discussing this phase of the nations financial ex- perience authoritative writers have found 1t convenient to group these loans under four headings; (a) Long Term Loans; (b) Short Term Loans;
  ary Indebtedness,
 It is impossible In the brief space at hand to analySe these completely, but one may gain a general idea of the system by a hurried survey of these issues which attracted the widest at- tention and made the greatest appeal to the subscribers,
 With the exception of an issue of S50,OO0,o0O of 20 year bonds bearing per cent. interest, the loan operations of 1861 were of a temporary nature, but in February, 1862, an issue of $500, 900, ,O0O was authorized, at 6 per cent, redeemable after five years and actually payable in 20 years. It was provided, however, that they were not to be sold "below the market value," which Secretary Chase interpreted to mean at par, and since a majority of investors were buying bonds merely for the purpose of selling them again at a profit, only $2S,75o,OOO of the issue was sold.
 During 1862-1S63, after the Federal army had suffered reverses and money was badly needed, the system of tenn porary loans was revived and certifl- cates of deposit, bearing five per cent. interest, were issued. They proved popular and within a month the $25,- 100000 authorized as a limit had been doubled. Six months later 1t was increased to s1OO,OOO,0 900 and by the next year-June, 1864-a limit of $15O, O,0OO, 900 had been authorized. The premium on precious metals caused coins to go almost out of cir culation, and 1n their place Congress authorized the Ise of stamps. That medium, inconPenient at best, was re- placed March 2, 1868, by small notes called fractional currency or ''shin plasters' and the $50, ,0OO, 900 worth of it authorized, proved effective in re- plenishing the treasury.
 When Congress met in December 1862, it was confronted by a deficit of 6,000,000. To meet it, a series of treasury notes totalling $900, ,0OO was authorized, but of the amount only $75,OOO,0O0 was sold. In the meantime, however, the restriction against selling below par the $5OO,- 000,000 bond issue, authorized Il months before was repealed, and Jay Cooke, a New York banker, was en. gagged to dispose of the bonds on q commission basis. Cooke established agencies throughout the country anG 4O0,000,000 of the bonds were solo within a year. The plan of selling bonds through brokers and outside the immediate control of the govern ment, aroused much antagonism ant it was abandoned by Chase in nego tiating the next loan.
 Temporary loans were resorted tC during the fiscal year of 1S63-64 when one year notes bearing pc cent interest were issued, and solt through the banks of New York. Phil adelphia and Boston. They brought return of $44,52O,OOO. An issue o two-year notes was disposed of at tn time and through their sale S166, 4S0, 900 was realized. The notes, however were not entirely desirable since thei coupons could be clipped only by a officer of the government, which mad them unsuitable for popular invest ment. They were held chiefly b banks for reserve purposes and tn banks in turn, set free their ow paper currency, which it was contend ed increased the evils of an inf1ate monetary medium. Realizing a dan ger, OGCIGldIS OuaSe CIdnSeQ plans and when it became necessar to negotiate a temporary loan the foI lowing year, preference was given t the compound interest treasury note at higher rate of interest
 The financial condition of the fed eral government was found to be in very satisfactory condition when Sec retary Chase made his report to Cor gress in December, 1868. Taxes ha begun to be productive, confidenC had been restored through the succet of the Union armies at Gettysbul and Vicksburg, the premium on go had decreased and the bonds left C hand from the early long issue, wel in demand. The Secretary reporte that the receipts from loans for u fiscal year were $590, 100000 and l proposed to the Committee on Wa and Means that further loans be al thorized for $594,000,000 for the fc flowing year.
 Secretary Chase also asked f greater freedom in negotiating loa and in compliance with his reque. Congress passed a new loan a March 3, 1864. authorizing an issue S200, 900, 900 of bonds at not over per cent, and redeemable in betwe i've and 40 years at the discretion
 the government.
 Chase lowered the interest on t, loan to 5 per cent. and buying near ceased. Only $73,337 900 was realiz while the expenses of the war we rapidly increasing. Short loans we again resorted to and one and tw year certificates Of indehted nesS hee