The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1918-10-03
BOND PRICE VARIATIONS

be able 10 nosi a lean OF $4,000, GEO.
600 with every prospect Of lie fofAihs
9 safe. sound and thoroughly desira'
bic investment for the individual, an
authority on the subject, 4. Kerr, sta-
.istical expert. said as this country
Vas entering the great war
ON the basis on which Great Brit
ain and France were borrowing, the
United States might with comparative
safety borrow up TO j3s, 500 ,ooo, 600,
this statistic an said. for The United
states has proved that II can easily
and rapidly pay Oh considerable debt,
and II is still country with magni-
feent opportunities for development
and the production OF new wealth.
After being al war year and ,
half. with its always excessive nrst
cost. he war Indebtedness OF the ooun-
try as expressed in Liberty Loans
and War Savings stamps is less than
fifteen billion dollars The new lad
erty Loan. he FIGHTING Fourth, there
fore. offers good and safe invest
ment 10 the loyal as we'll as an op-
portunity TO give practical expression
TO their patriotism,
In the entire history OF govern
ment loans, and 1: goec back through
the centuries, there are very Few 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 untried go ernments OF
as a 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 VIC
torious country Taking past wars
as a precedent. the p- -ent war. De-
ing on a larger scale han any which
have preceded II, should have 'arger
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 s52,7ss,722 and state
debts amounting TO over Is million
were assumed by the federal govern
ment The foreign debt of 10 million
with an interest rate Of 5Go was re-
paid by 1915. The domestic debt al
so was funded and gradually repaid
the interest rate being reduced %
eet, 51-2Gd, 1-2cs and go in various
ways.
To the total Indebtedness of APP
proximately SO million In 1900 was
added sl1.250.000. the purchase price
of Louisiana but more than half had
been paid when the country entered
into the war OF 1872 In 1871 an at
tempt was made % introduce United
States bonds on the London market
The .,cc were quoted at 63 10 70.H,
the CO. a. l01 and 1902. Interrupted
by the War of 1872 second attempt
was made in 1916. The 3Ge were then
quoted at 81 and the 6fo at 81 IL and
50 These same bolds were quoted
in Philadelphia at the same time al
6l and 80. A 6rt loan put out in
1913 was sold a; So IA.
Although the war added about 30
million to the public debt the floating
debt had been reduced to such small
proportions by 1917 that payment mo
the sinking fund recommended. BY
1896 so much had been paid of that
% million surplus reven :e was DIS
tributed among the states. Although
II added approximately AZ million TO
the public debt the Mexican war did
no. interrupt this prosperity. A 81
loan which partially financed it was
issued at Dar
On the basis OF all claims being ad-
justed the Civil War Is stated to have
cost the Government three billion
dollars. AT It's maximum In 1868 the
national debt was s2756.43157l. w
TO the present war the Civil war was
one OF the most expensive and ex-
haustive Of all history We. the last
war loan bond was redeemed AZ years
later. In 1907. This was feat re-
rsrded BY Europe as astounding.
The most popular loan OF that wal
was the SCI. 5-20year OF 1862 OF
which s5l5.000,0 900 was placed at par
Remnding operations from 1870 G
1877 redu ed the interest rate 20 eTo
10 4 l-2rs and then TO VI All Is
sues were at not less than mar
The prices Of the IS OF 1881 were
as follows during the WAT 1871. lI"i
81 l. to "a: 1862. from 81 IL 70
107 l. 1853. from 81 "a to ITO -;
1864. from l02 TO lls: 1853 from
lO3 l-2 to liz 3-s
lust previous 10 the Spanish Wal
the national deb. amounted TO some
thing over s9ss.0O000o. Az the end
O, the war this had mounted to
sI.l55.320,235 A 5000 ,O0O,ooO ~
war loan offered at par was SUP
scribed seven times over and went
20 l0e inside OF three months The
deb. was steadily reduced during the
nine wears following the war and
bonds for the Panama Canal we're Is
sued at or owe par, showing the
high credi, standing Of the country
During this period government secur-
tiles rose 10 maximum OF 1873 3-4
for the ~ and lo5 IA for the 3fs
issued 10 finance the canal.
Since then there has been no de-
crea.e. the 1916 net Indebtedness o!
the United States standing at SLICE
$40 1875 and having interest rates at 41o
ses. l-2T and 2Te. OF the gross
deb. sscS was non-interest beartnc
and 24ct was bearing interest at 20
.~,., ~ nAo,ex,Ant~x