Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1918-10-02
Fighting Fourth Liberty Loan
Facts and Figures
BOND PRICE VARIATIONS

On the basis of the relation be-
tween national Indebtedness and
weaith at the time of the Civil War
the United States Government should
be able to float lean of s25, 0OO. OOO.-
700 with every prospect of its forming
safe, sound and thoroughly desira-
Die investment for the individual. an
authority on the subject, f. Kerr. sta
.istical expert, said as this country
wSs entering the great war.
On the basis on which Great Brit
Gin and Franc. were borrowing, the
United States might with comparative
safety borrow up to s3S,500, 00O. 600,
this statistic en- said, for THE United
States has proved that il can easily
ana rapidly pay off considerable debt,
and ii is still country with magni-
hcent opportunities for development
and the production of new wealth."
After being at war year and 4
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 -Four tn, there
fore. offers 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 i. goe5 back through
the centuries. there are cry 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 untriad GO ernments or
as 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
a period of expansion and Invention
in the defeated as well IS in the vic
torious country. Taking past wars
as precedent, the pr--ent war. be-
ing on larger scale .han any which
have preceded II. should have larger
results.
When the present form Of govern
ment came into existence in this
country In 1890 the total indeb. edness
OF the United States exclusive of pa
per currency was S52,7ss.72c 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 SO was re-
paid by 1875. The domestic debt al
so was funded and gradually repaid.
the interest rate being reduced 20
So. 5 1-2To, 4 121o and $50 In various
ways.
To the total Indebtedness of ap-
proximately SO million in 1900 was
added sl1250. 900, 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 % introduce United
States bonds on the London market
The Oh were quoted at SIS to 70.71,
the go 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 So at 81 1-2 and
so. These same boLds were quoted
in Philadelphia at the same time at
81 and go A SCI loan put out in
1913 was sold a. SO IA.
Although the war added about IS
million to the public debt the floating
debt had been reduced to such small
proportions by 1917 that payment INFO
the sinking fund recommended By
1886 so much had been paid on that
% million surplus reven he was dis
tributed among the states. Although
it added approximately 40 million to
the public debt the Mexican war did
no. interrupt this prosperity. A 6%
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 1865 the
national debt was s2756. 431,5 Up
to the present war the Civil war was
one of the most expensive and ex-
haustive OF all history ye- the last
war loan bond was redeemed AZ, years
later, in 1907. This was a feat re-
garded by Europe as astounding.
The most popular loan of that war
was the 6@S, 520-year Of 1852 OF
which $4,000, 900 was placed at par,
Refunding operations from 1870 %
1877 redu ed the interest rate 20 go,
to 1-2GS and then to 43o. All is
sues were at not less than par.
The prices of the IS of 1881 were
as follows during the war; 1861. from
"a IL to "a; 1862, from 81 IL to
lot l. 1853. from 81 IA to no "a;
1864. from 102 to lis; 1868 from
1903 1-2 to liz 3-S.
Just previous to the Spanish War
the national deb. amounted to some
thing over 1886, 100000. At the end
Of the war this had mounted to
s1.155. 320,a35. A s200,0o0.00o $50
war loan offered at par was sub
scribed seven times over and went
TO 106 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 -ove par, showing the
high credit standing Of the country.
During this period government secur-
tiles rose to maximum OF iss -
for the 40 and 1913 IA for the $50
issued to finance the canal.
Since then there has been no de-
crease, the 1915 net indebtedness OF
the United States standing at u, 49,,
$50 ,195 and having interest rates at 40,
$50, 2 1-2go and 20. OF the gross
debt $500 was non-interest bearing