Every evening, Wilmington daily commercial., 1918-08-14
ONE DAYS WAR COST
PAYS 1776'S BILL
Revolution Cost $50 900, 900; Pres
ent War TO Cost u. >. "a
Billions This Year.

Washington. Mug a. At a time when
americans are thinking in war terms oi
billions Of dollars which must bc raised
bv domestic loans and tayatlon It -
interesting to examine the methods cnl-
Moved to finance the first American war
:hc War nf Independence,
The total cost at the Revolution, not
including the expenditures OF the lnd'-
vIdual states. has been estimated NJ
about $50. 900 900 good deal less than
ono dav's cost of the present war. nc
SIM is truly insignificant rs compared
With the S24 ,OOO .0nN. 600 which viii he re-
onrcd ia finance america share OF the
present world war during the coming
wear.
The II colonies were certainly as un-
prcnarrd to strike decisive blow for
Freedom rs anv country possibly could hc.
and the people. handicapped themselves
M the very outset. hy denying % Con
grcss. the power Of lcvylng and collecting
taxcs which would have facilitated the
raising OF war revenue,
sAur Oip FIGHT TODAY
The colonials could not bring them
selves Ia the point Of giving what they con
sidcrcd too much power to limited
grnup of mon representing centralized
government and while tho Congress
could enact legislation for an army and
navy. il could do no more than make
suggestions to the various states, regard
inc the manner IN which these lighting
forces were to hc maintained As result,
there was a great amount ot government
n confusion, and while at least three
systems of raising revenue wCrc suggested,
there was no definite plan as TO the way IN
which these methods were 20 hc adjusted
Ia ono another
Greatest reliance was placed ~ first
unon tho issue of bills of credit some
foreign loans were negotiated, domestic
loans were made and a nominal sum was
realized through taxes levied by the States.
The bills Of credit however, rested upon
what proved TO be on unsound basis,
FlRsr loan S2.OO0,0oo
Within a week after tho battle Of Bunk
Or Hill authority was gwen for m issue
of $1,000 600 In credit bills and the
amount ia hc redeemed between lay
and l7~2 was carefully apportloncd
among the colonIsts other ISSUES follow
cd the total issue being about s2il.332,-
7Sn but at no tImc was that amount IN
circulation and seldom was It acceptable
at face value In l77q depreciation be
came very marked and from January to
Nav of that wear. the value Of the bulls
varied from 20 10 to 3Sl2 10 one.
The domestic loans were more success
FIJI. although, with the exception oi one
! small loan for the purchase Of gun powder
m June l775. these were not authorized
/ until October l776. nearly year and a
/ half after the beginning OF the Revolution.
! Tho fail,,-e of the bills OF credit and the
! nalcity of the revenue being secured
! through taxation. led Congress to author
/ izo the borrowing OF s5000,000 AT the
/ rate of four per cent The lenders received
/ iudented certificates which may rIghttully
/ he considered the forcrunners OF the
! liberty Bonds 1t was found necessary
/ AZ a later period to raise the interest rate
! TO six percent, bat through tour loans the
| amount realized was only s5,1S1 600. In
/ September l7777. the American envoys
/ secured the first loan from France, and
/ that resulted in such a stimulation OF the
! domestic loans that from that time untl
! the loan offices were closed, 81 ,oS4 ,OOe
! in specie was subscribed.
! FRANCE GAVE L. : 2,00O0CN-
The foreign loans obtained by the strug
/ cling colonies during their war for lnde
! pendencc are particularly interesting a
| the present time when the | nlteG State:
i making such tremendous loans to The
various allied countries. Through Ben
iarnin Franklin, Governor Morris anc
others. funds were obtained either II
I loans or subsidies from he government
of France and Spain and from privat
| bankers in Holland France granted sub
| sidies OF 2OO0.OO0 livres in l777 and .,
900 900 lvres in l7Sl. In al, these sums
which NAV be regarded as gifts, amounte'
to about 81 2.000,000
The -nited States borrowed from Franc
between l777 and 1888, the total sum 0
S.. .3j2, 800, while Holland loaned tn
| struggling nation 81 ,304 900 and Span
furnished Sl74, III total Of 81 800, ,5l7
Nor must it be forgotten that Franc
spent at least $6,000,OO0 on the army
which she sent to the aid Of the colonies.
NATIONS DEBT S39 1913 $50 IN 1884
At the beginning Of 1884 ten year
after the declaration Of independence
| the indebtedness of the national govern
ment was S3q, 1923 $50 This was dividet
as follows. Foreign, 81 ,93l $50; domesti
loan certificates, S11 ,585 900; unliquidat
| ed certificates Of Indebtedness, SIG, 70S,
600. arrears of interest on domestic debt
S., 100000 These figures are trivial a
compared to those representing the wa
debt Of today, but this Indebtedness
weighed far more heavily upon tn
people Of that time than the tremendou
expenditure Of the present does upon tn
American public today
It was no small matter for the colonial
and their descendants to 50 shape tn
machinery Of the government that result
could be obtained smoothly and efficiently
There were many ups and downs, succes
ses and failures, but the foundation lai
in those trying times in the foundatio
upon which the American financial sys
TEN rests at the present time, and it is be
cause Of the solidity Of that foundatio
that the United States has been enable
to take such an important part in th
wor Id struggle for democracy.