Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1918-10-18
Fighting Fourth Liberty Loan
Facts and Figures
BOND PRICE VARIATIONS

tween national Indebtedness and
wealth at the time of the Civil War
the United States Government should
be able to float loan of 25,000,00O,-
900 with every prospect of its forming
a safe, sound and thoroughly desira-
BILE investment for the individual, an
authority on the subject, E. Kerr, sta
tistical expert, said as this country
was 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 $38, 800, 100000,
this statistic.an said, for 1.-THE United
States has proved that it can easily
and rapidly pay off considerable debt,
and it is still a country with magni-
ticent opportunities for development
and the production Of new wealth"
After being at war year and a
half, with it's always excessive first
cost, the war indebtedness Of the coun-
try as expressed in Liberty Loans
and War Savings stamps is less than
fifteen billion collars. The new Lib
erty Loan, the Fighting Fourth, there
fore, offers a good and safe invest
ment to the loyal as well as an OPP
portunity to give practical expression
to their patriotism.
In the entire history of govern
ment loans, and t. goes 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 governments or
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 c.s in the vic
torious country. Taking past wars
as a precedent, the prccent war, be-
ing on a larger scale than any which
have preceded it, should have larger
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 $52,7S8,722 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 52o was re-
paid by 1875. The domestic debt al
so was funded and gradually repaid,
the interest rate being reduced 20
Sc, 8 1-2%o, 4 12T and go in various
ways.
To the total indebtedness of ap-
proximately SO million in 1900 was
added S11,250,000, 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 oT6 were quoted at 65 to 7O.7l,
the so a. 101 and 102. Interrupted
by the War of 1912. a second attempt
was made in 1916 The go were then
quoted at 81 and the go at 81 1-2 and
49, These same bolds were quoted
in Philadelphia at the same time at
81 and 80. A So loan put out in
1913 was sold az SO IA.
Although the war added about SO
million to the public debt the floating
debt had been reduced to such small
proportions by 1917 that payment into
the sinking fund recommended. By
1886 so much had been paid off that
% million surplus revenue was dis
tributed among the states. Although
1t added approximately 40 million to
the public debt the Mexican war did
no. interrupt this prosperity. A $50
loan which partially financed it was
issued at par.
On the basis of all claims being ad-
justed the Civil War is stated to have
cost the Government three billion
dollars. At its maximum in 1866 the
national debt was s2.756, 431,571. Up
to the present war the Civil war was
one OF the most expensive and ex-
haustive of all history yet the last
war loan bond was redeemed AZ years
later, in 1907 This was feat re-
,garded by Europe, as astounding.
:, The most popular loan of that war
was the 69c, 5-20year Of 1852 OF
which s515,OOO,OOo was placed at par.
Refunding operations from 1870 20
1877 redu ed the interest rate 20 SO,
to 4 1-2%o and then to 44c. All is
sues were at not less than par.
The prices of the IS of 1881 were
as follows during the war; 1851. from
"a IL to "a; 1852, from 81 IL to
JOY l.. 1853, from 81 ga to 40 "a;
1864, from 1902 to 11S; 1865 from
103 12 to 112 3-S.
Just previous to the Spanish War
the national debt amounted to some
thing over s986,000,OOJ At the end
of the war this had mounted to
S1,155,320,235 A s200,000000 3%e
war loan offered at par was sub
seribed seven times over and went
to LOG inside Of three months. The
debt was steadily reduced during the
nine years following the war and
bonds for the Panama Canal were Is
sued at or .,ove par, showing the
high credit standing of the country
During this period government secur-
tiles rose to maximum of 139 "a
for the 4e6 and 103 ID for the 34t
issued to finance the canal.
Since then there has been no de-
crease, the 1916 net indebtedness OF
the United States standing at s1,132,-
689, 1875 and havinganterest rates at 40
go, 2 1-29s and 2Tb. or the gross
debt $500 was non-interest bearing
and 24cS was beauing interest at 2%
GERMAN VIEW OF CHRISTIANITY
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