Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-09-15
HIGH COST OF WAR
GREATLY INCREASED
Conflict Between States Canssds
Expenditure of $3,o27,7e1, onnssss
by Federal Government. ss.ss
CHASE HAD FAITH IN LokES
Present Struggle Takes $50, oS1,
600 Each Day of Money,
of United States. ssss

~, WASHINGTON. September a sll
war Between the States cost. thenFed-YgI
sive Of pensions and interest ont No.
public debt beyond the actual ss1arIsI
period. v This amyant seems snaiI;Sn,
100000 day the United states noSs,ia S
paying as its share Of the present :esSss4I
such that the people OF that daysfsNsS|
the burden they we're forced to GTEf--s
to greater degree. perhals,. thanss2e@s|
the people OF the present. ;isss1.s ~
There was demand by the. psAatay.
during the war period for. emsrgenHy.r
taxation. and, while a vast amouqtss6f ~
means Secretary Chat, head ofrstSS
treasury Department pinned ,s.hassfN|
greatest faith to loans. fs-,..s.s.S;I
The loan system inaasura ted ss,Sr
Chase was elaborate and complicat4Asss|
Loan followed loan in rapid .suocesstSG.-rs
and they were foated at varying rAsSssSs
periods OF time. in discussing tSSSSs|
phase Of the atoms financial. ernsns Il
ence, autho ritative writers have taAndss|
der four headings: (a) lcnE-term loafts,.s|
OBJ short-term loans tc) noninteysitTs
It is Impossible in the brief spase
at hand to analyze these completASSssr|
but one may gain a general ides~6fss||
those iss,ns which atrraeivd stHesis
widest attention and made the greatsstssss|
With the exception OF an issue5,e fseSs|
s3O.9OO.O0o of twent-year bonds beSETH3ssI
Ing per cent interest. the loan oPefasSs.3a||
ture. but in February. 1862. an issvssrf|
OF 35oo,o0oo0o was authorized, at1vgsI
per cent redeemabie after Ave ysStssss1l
1t was provided. however, that tneysal
were not to- be sold below the Aarks1ss;s|
preted to mean at par. and sineesFssa
hm n.Ss Of Investors Inv were buyinEsI
ins them again at profit, only Sgsas.ssssd
10000 OF the issue was sold. S.cs,sfs f II
During lS62-1sss. after the Fedsrsissss
army had suffered reverses and moneSStI
porary loans was revived, and ,csEtiHSssd
Gates OF deposit; bearing per. centTiS4sS
popular. and within a month the sasssesa1
100000 authorized as a limit had bsEHSa1
doubled month"; later 1t was,fiasaJ
year-lune. 1St4-a limit of $3.50, Ssts.ts|
900 had been authorized. The prenIassksI
on precious metals caused coins Z osENse]
place Congress authorized the uselyAHE|
stamps. That medium. inconyenfsSIssl
smsl notes called fraetional CUR snsysss|
or shin plasters." and the $5o.ooogHsssI
worth of 1t authorized proved effectiNE3
in replcnshins tho Treasury. Ne IN
CONGRESS CONFRONTED =, .;Ssa
ny DEFICIT lS 1sls1!1
When Congress met in DecemksEs-s.l
1852, Il was confronted by denGfteosfs -
ssIs,ooo,ooo TO meet it, a seriess.es
was authorized, but OF the amount onlSn
s75.oo0,0oo was sold. In the meaptimeTs|
ing below par the $500, 100000 BoMdsss]
issue authorized eleven months bef6rsSS]
Was, repealed. and Jay Cooke. q NsHss1
York banker. was engaged to disposa
OF the bonds on commission baSY6SE1
Cooke established agencies thronEHF
"A
plan OF selling bonds through broksrSsyl
and outside the immediate controIloflsfl
tasonism, and it was abandoned bss 81
chase In negotiating the next loanssSsaSsssssj
Temporary loans were reSortedsfbsS1
during the fiscal year of tS6S-64, w.hHntsrI
one-year notes bearing 3 per cent IT.
,s were issued, and sold thro9Es
and Boston. They brough return On
:45.o,ooo. An issue OF two-year nsJaASSj
Was disposed OF at the time, a1aM1
realized. The notes however. Swers-nes,,t1
entirely desirable, since their coup9Hf,sS1
could be clipped only by an officer,rotEs1J
the government, which made them 4,is-ls
suitable for popular investment. TnSyI
were held chiefly by banks for reserSes.
purposes, and the banks. In turn, SCI I'll
free their own paper currency, which, t.S.
was contended increased tfe cvils*isEx1
an inflated monetary medium. ReslI3sSs1
ing danger. Secretary Chase cha.iGedrSs|
mis- plans. and when it became :necesssss
sary to negotiate a tenn srary loan sasSs
I
to the compound interest Trea sITS
notes at higher rate OF interest. rsAsfs.d
The financial condition of the Fed
eral government was found 10 be in.S.s,|
Secretary Chase made his repprtltsssd
Congress in December. 1863, Taxsus.
had begun to be productive, confdeHeSsss1
had been restored through the sus,s
cess OF the Union armies at Gettys-s
gold had decreased ,rs and de the bonds Istss
on hand from the early long issue ,wastSG1
in demand. The secretary reportsd.N
seal 'S Year et we're s5s s o GOO. and
proposed to the Committee on WaElS.,
and Means that further loans BIO ap-.s.
lowing year. ss.sl,,,ss,
secretary Chase also asked sfesss
In Mi4 hts
s. 1854 authorizing an Issue Of Sa6o.sss;
and redeemabie in between Ave ann
forty years at the discretion OF thsS,sl
government. -.-S.s
RATE on nan TO PER eExTa.
Chase lowered the irserest on tnsSsts||
cea sed Only s7s,Ss7,ooo was rsaii.sis !;
rapidly rapid 'n incse%i nss SHIRT a' ls s
year Certificates Of indestedness seas.tss
they were followed by still furtnsrty
issues. all of which were in popular dssis,|
mand sssss.ss
Owing to various causes, chsse ra.ss
signed June 20. 1864. ana was 4ue-EE]
ceeded by Senator William p. VesssA-
den. of Maine. He had been chaJryts4a.
Of the Senate Finance Committee
There was a balance on hand OF en;y
StS.St2.o0O. Interest on the pu bile deXtgs1
was due the pay OF the soldiers wa3@ssI
in arrears. and the army expanstnrsssI
meant an Increase OF daily expsnS44SSi
ranging from s2.5oo0oo to $1,000. ESQ., ~
Ft&senden remained In ONCE o4ty,sFJ
until March S. 1865 but duv.nE thsS IA
time no proved his ability and hts6e
courage. He proposed great ratisGf.
loan of $2oo0o0,00o In the form y.aSS,,,
notes, payable in three years. al lassss
interest of 10 per cent. The ser7fcsHS IS