Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1918-10-08
Fighting Fourth Liberty Loan
Facts and Figures
BOND dPRIcE VARIATIONS

N0NU 1fkltk vAklAtIVNO
ON the basis Of the relation %.
tween national indebtedness ana
wealth at the time Of the Civil War
the United States Government should
be able to float lean of>$2b. o0O.uo0.-
600 with every prospect Of its FORMING
safe, sound and thoroughly desirs-
BILE investment for the individual. an
authority on the subject, E. Kerr. ste-
.istical expert, said as this country
was entering the great war.
|. On the basis on which Great Btu
ain and Francs were borrowing, me
United States might with comparative
safety borrow up to $3S,50e.0O0.0 oo:
this statistic In said, for "The Uniteo
States has proved that It can easiiy
and rapidly pay OF considerable DEBT.
and It Is still country with magni-
fcent opportunities for development
and the production of new wealth.
After being at war a year and =
half, with its always excessive nrst
cost, he war Indebtedness OF the coun-
try as expressed in Liberty Loans
and War Savings stamps Ia less than
fifteen billion ,'ollars The new LID
erty Loan, he FIGHTING Fourth, there
fore, offers good and safe invest
ment to the loyal as well as an op-
portunity to give practical expression
to their patriotism. +
In the entire history OF govern
ment loans, and /: scec back. through
| the centuries. there are Dry rev oc-
casions on which the interest on the
bonds of responsible governments has
been defaulted. repudiated or FUND
ed. This has happened only In the case
OF new and untri I'd 60 ernments or
as q result of anarchy and reputation
Of the debts then incurred by the re-
sponsible incoming government Even
then the reputation has usually been
temporary. War is usually followed By
period of expansion and Invention
In the defeated as well IS In the vio-
| torious country Taking past wars
az q precedent, the p -ent war. be-
ing on q 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 1870 the total indebtedness
Of the Uniter States exclusive OF pa
per currency was $50, 7sS.722 and state
debts amounting to over 10 million
were assumed by the federal govern
ment. The foreign debt OF 10 million
with an interest rate Of $50 wes re-
paid by 1875. The domestic debt al
20 was funded and gradually repaid,
the interest rate being reduced %
| 81o, 3 1870, 4 1870 and 80 In various
ways.
To the total Indebtedness OF ap-
proximately SO million In 1900 was
added. $11.250000. 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 oh were quoted at sc to 70.Tl,
the 6% a. 101 and 102. Interrupted
by the War OF 1912 q second attempt
| was made in 1915. The $50 were then
| quoted at 81 and the $50 at 81 IL and
| So. These same holds were quoted
| in Philadelphia at the same time al
| 81 and %. A SCI loan put out IN
| 1913 was &c Id a. 81 Ia.
Although the war added about 90
million to the public debt the floating
| debt had keen reduced to such small
| proportions by 1877 that payment mo
| the sinking fund recommended. by
| 1885 30 much had been paid on that
| 28 million surplus reven e was dis
| tr,buted among the states. Although
It added approximately 40 nillion 10
| the public debt the Mexican war did
| no. interrupt this prosperity. A 6%
loan which partially financed 1t was
issued at par.
On the basis Of all claims being ad-
| iusted the Civil War Is stated to have
| cost the Government three billion
| dollars. At its maximum In 1865 the
| national debt was s2.7b6.431.671. 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-
sarded by Europe as astounding
The most popular loan OF that wal
was the co.,. E-20-year Of 1852 o.
which S516. 900. 900 was placed at par
Refunding operations from 1870 q
1877 redu ed the interest rate 20 $50
to 1-oc. and then TO 4os. All Is
sues were at no. ,ess than par.
The prices Of the Is OF 1881 were
"a follows during the war; 1861. from
"a 1-e to "a: 1862. from 81 IL tc
107 l. 1863. from 81 81 to ITO S-4;
1854. from 102 TO 11S: 1885 from
/ 1903 1-2: to 112 3-S
Just previous to the Spanish Wal
the national deb. amounted to some
thing over $3.50. 100000. At the end
Of the war this had mounted to
s1.155,320,235. A $200,00o.0Oo S%
war loan offered at par was SUD.
scribed seven times over and wen,
TO 106 inside of three months. The
deb. was steadily .educed during the
nine years following the war and
bonds for the Pa7ana Canal were Is
sued at or owe par, showing the
high credit standing OF the country
During this period government secur.
tiles rose to a maximum OF 1SS 81
| for the 40 and 1903 Ia for the ~
issued to finance the canal.
Since then there has been no de-
crease, the 1916 net indebtedness d
the United States standing at y, 49,
$50 ,196 and having interest rates at 48c
3ss. 3 1876 and 2%. OF the gross
debt 68% was non-interest bear1nf
and 24% was bearing interest at 1H