Grand Forks herald., 1918-08-14
one DAY OF.
WAR COSTS
MORE THAN
4 REVOLUTION
Cost of Entire Revolution
Estimated at About
$so,0o0,0oo.


when Americans are thinking in war
terms of billions of dollars which
must be raised by domestic loans and
taxation it is interesting to examine
the methods employed to finance the
first American war-the war Of inde-
pendence.
The total cost of the revolution, not
including the expenditures of the in
dividual states. has been estimated at
about sso,ooo,o0o. a good deal less
than one days cost Of the present war.
The sum. is truly insignificant as COM
pared with the $4,000, 100000 which
will be required to finance Americas
share Of the present world war dur
ing the coming year.
The thirteen colonies were certain
ly as unprepared,t strike a decisive
blow for freedom as any country pos
sibly could be. and the people, handi-
capped themselves at the very outset,
by denying to congress the power Of
levying and collecting taxes which
would have facilitated the raising of
war revenue.
The colonists could not bring them
selves to the point of giving what they
considered too much power to limit
ed group OF men representing CEN,
tralized government, and while the
congress could enact legislation for
an army and navy, it could do no
more than make suggestions to the
various states, regarding the manner
in which these fighting forces were to
be maintained. AS a result. there was
a great amount of governmental con-
fusion, and while at least three sys-
TENS of raising revenue were sug-
gested, there was no definite plan as
to the way in which these methods
We're to be adjusted to one another.
Greatest reliance was placed at flrst
upon the issue Of bills of credit; some
foreign loans were negotiated; domes-
tic loans were made and a nominal
sum was realized through taxes levied
by the state. The bills of credit, how
ever, rested upon what proved to be
on unsound basis.
Within a week after the battle Of
Bunker Hill. authority was given for
an issue d $2.o0o.ooO in credit bills.
and the amount to be redeemed be-
tween 1879 and 1882 was carefully
apportioned among the colonies. 9th
er issues followed, the total issue be-
ing about $241.552,7s0, but at no
time was that amount in circulation
and seldom was it acceptable at face
value. In 1879 depreciation became
very marked and from January to
MAY VI tAdL year, LHe value OF Tue
bills varied from twenty to one to
thirty-eight and a half to one.
The domestic loans were more sue
cessful, although, with the exception
of one small loan for the purchase Of
gun powder in June 1875; these were
not authorized until October 1875,
nearly year and a half after the be-
ginning Of the revolution. The failure
Of the bills Of credit and the pauoity
of the revenue being secured through
taxation, led congress to authorize the
borrowing Of $5,000.0o0 at the rate Of
four per cent Tho lenders received
fully be consid red the forerunners OF
the Liberty Bonds: It was found nee
essary at a later period to raise the
interest rate to six per cent, but
through four loans the amount realiz-
ed was only $3,7S7,000. In September
1777, the American envoys fIcured the
first loan from France. aga that re-
suited in such a Stimulation Of the do
mestic loans, that from that time un-
til the loan offices were closed, ST.
$4,000 in specie was subscribed.
The foreign loans obtained by tho
struggling colonies during their war
for independence are particularly, in
Tteresting at the present time when the
United States IL making such tremen-
dousi loans to the various allied coun-
tries. Through BENJAMIN FRANKLIN,
Gouverneur Morris and others funds
| were obtained either In loans or sub
sidies from the governments Of France
,, and Spain and from private sbankef1
in SHollaud. France grant4d subaaidses
Of 1000. 900 iivres In l177s ana u. .0Oe,- ?
| 900 livres IN 1871. In al. these sums,
which may be regarded q gHtG
amounted TO 81 .eeS 500. x q ,l 5517-l ,sy7,
The United States borrowed from
France between 1777 and ITS 3 the %.
TAI sum Of $s,36c.t 800. while Holland
| loaned the struggling nation el.80l,-
900 and Spain furnished S174,i17-a
total Of S7.S3o.517. Nor must 1t be f1r-
gotten t.iat Francs spent At leaf sa.-