News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1918-10-16
Fighting Fourth Liberty Loan
Facts and Figures
BOND PRICE VARIATIONS

On the basis Of the relation be-
tween national indebtedness anc
wealth. at the time of the Civil Wal
the United States Government should
pc able to float loan of $25,000,0 00,-
ooO with every prospect of it's forming
safe, sound and thoroughly desira-
Die investment for the individual, an
authority on the subject, e. Kerr, sta
.lstlcal 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 $38,500, 100000,
this statistician said, for 1.-THE United
States has proved that it can easily
and rapidly pay off a considerable debt
and 1t is still country with magni-
ncent opportunities for development
and the production of new wealth"
| After being at war a year and a
half, with its always excessive first
cost, The war Indebtedness of the coun-
| try as expressed in Liberty Loans
and War Savings stamps is less than
hfteen billion dollars. The new Lib
erty Loan, the Fighting Fourth, there
lore, offers good and safe invest
ment to the loyal as we'll as an OPP
portunity to give practical expression
to their patriotism.
In the entire history of govern
ment loans, and l. goes back through
the centuries, there are very few oc-
casions on which the interest on the
bonds of respon ole governments has
been defaulted, repudiated or fund
ed. This has happened only in the case
of new and untried~ go ernments or
as result of anarchy and reputation
or the debts then incurred by the re-
sponsible incoming government. Even
then the reputation has usually been
temporary. War is usually followed by
a period Of expansion and invention
in the defeated as we'll as in the vic
torious country. Taking past wars
as a precedent, the present war, be-
ing on larger scale than any which
have preceded 1t, 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 $52,78S,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 $50 was re-
paid by 1895 The domestic debt al
so was funded and gradually repaid,
the interest rate being reduced 20
SO, 1-2@o, 4 1-29o and go in various
ways.
To the total Indebtedness of ap-
proximately SO million in 1900 was
added $11,250,000, the purchase price
of Louisiana but more than half had
been paid when the country entered
into the war of 1912. In 1911 an at
tempt was made 20 introduce United
States bonds on the London market.
The 90 were quoted at 65 to 70.71,
the so a. 101 and 102. Interrupted
by the War of 1912, a second attempt
was made in 1916. The 800 were then
quoted at 81 and the SO at 81 IL and
so. These same bonds were quoted
in Philadelphia at the same time at
81 and So. A $50 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
by 1917 that payment into
the sinking fund recommended. by
1886 so much had been paid off that
20 million surplus reven !e 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 SO |
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
A.
dollars. At its maximum in 1865 the
national debt was $2,756, ADJ 81. Up
% the present war the Civil war was
me of the most expensive and eX-
laustive of all history yet the last
var loan bond was redeemed AZ years
alter, in 1907 This was a feat re-
yarded by Europe as astounding.
The most popular loan of that war
vas the SO, 5-20-year of 1862 Of
which $515,000000 was placed at par.
2efunding operations from 1870 20
.S77 redu ed the interest rate 20 $50,
o 4 1870 and then to 4Po. All is
ues were at not less than par.
The prices of the IS Of 1881 were
IS follows during the war; 1861, from
a IL to "a; 1862, from 81 IL to
OF l.. 1863, from 81 ga to 40 ga; {
864, from 102 to 11S; 1865 from
O3 1-2 to 112 3-S.
Just previous to the Spanish War ]
he national debt amounted to some {
hing over s9S6,OOO,OOJ. At the end
f the war this had mounted to !
j ,155, 320,295. A $200,000,O00 go
var loan offered at par was sub '
cribed seven times over and went
o 106 inside Of three months. The |
ebt was steadily reduced during the
line years following the war and
onds for the Panama Canal we're is q
ued at or love par, showing the |
Ugh credit standing Of the country. |
'uring this period government secur- T
.ies rose to a maximum of 1879 3-4 e
Or the 40 and 103 IA for the $50 i
3sued to finance the canal. b
Since then there has been no de- a
rease, the 1915 net Indebtedness OF O
he United States standing at s1,1S2,- a
80 ,195 and having interest rates at AZ, il
%, 2 1-29o and 2q6. OF the gross s
ebt $3.50 was non-interest bearing D
nd 24e6 was bearing interest at go.
VIEW OF CHRISTIANITY = =
Read this by Friedrich Wilhelm
~ 49,, 81 "a rr-ornnp |