The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1918-08-21

tn y the issue OF ,VVV
worth of new bonds, bearing 8 per
cent interest. owing To the war In
Europe, American commerce was
fiourishing, export trade was brisk
and prices were high. AZ a result.
the success OF the loan was far great
err than had been expected.
The brush with Tripoli. however,
made additional revenue "a matter Of
necessity, but instead OF restoring the
excise duties which had formerly pre-
vailed. on March 26, 1904,
authorized an addition OF 2h per ccnt
on all imported articles subject To
aGvaiorcm duty and an additional ~
per cent un all goods imported in
foreign vessels. The proceeds Of this
act were known as tho Meditcrran-
can fund and was used for tho pro-
lection of tn. commerce, and camcn
~ the United states against the tar
barry powers. and ME- TO he levied
until a treaty was made.
II was no; until 1907. when war
threatened hat President jefferson.
much against his will. agreed To am
increase of expenditures for national
defense. At the same time he en-
tered upon the alternate policies ot
noh-importation al manufactured
goods and Of forbidding shipping to
leave American ports. This COM
pleteiy upset the customs receipts
which fell from sic. 500. 900 to $1,000
600 and at the same time Expenditures
for war increased from n,3og.0V0 In
1891 10 50 400, 900 In 1903. Fortifi-
cation OF ports and harbors was
fastened, gun boats were purchased
and the regular army was enlarged
Since affairs had reduced them
selves to greatly decreased
and greatly Increased expenditures.
Secretary Gallatin confronted a deficit
In the budget which amounted to
$1,000, O00. This was provided Tor.
however. by a balance which remained
on hand In the treasury. while In 1903
the embargo act was repealed and
was resumed with great
vigor. In 1910 the customs yielded
IS. 500. 600 and in 1911 this amount
was increased To $i3. 500. 00o. The
appropriation for the army n navy
was reduced and immediate financial
danger was safely tided over.
lbuIllE tllt ftANAlf NhtNE h'N 'Rff
a remarkable reduction OF the public
rebt which. between 1901 and ISL
was cue down by SIS, 100000. The
foreign debt. which included the
stocks Of 1895 and the loans OF iIhs
and 1900. was wiped out and no
further recourse was made TO tenn
porary loan.
The year 1911 was memorable In
the financial history OF the United
States, for Il marked the collapse OF
the United States bank. The directors
of the institution p~ctstioned congress
for a renewal Of their charter. Sec
.etary Gaiiaiin. reported in favor o'
IL. with certain recommendations for
changes In the banks policy. Among
them was that the bank be required
20 pay interest on all government
deposits above sa,o00.0O and also
hat II should loan 10 the government
nj any time "A sum not to exceed so
per cent OF It's capital.
Other influences were at work,
however, and vigorous opposition 10
the renewal OF tho banks charter was
manifested In congress-. The constitu-
tionality Of the bank was questioned
and Il was d~enourccd as IAN undemo-
cratic political institution" The bill
for renewal OF its charter was los,
in the senate February II. 1911. when
George Clinton, yice-prcsidcnt Of tho
United States. cast the deciding vote
against II.
IL then became necessary for the
government 10 turn 10 local banks foI
the custody of its funds. and q nty-
one 81 these institutions. locst for
tho most part In the principal ports
IL entry. were employed for this pnr'
pose.
The trouble between England and
the United States had been GROWING
all of that timr. and dcapite lack OF
preparation on the part OF h ne"
country, war was declared In Juns
1879. and congress was again called
to face extraordinary financial de'
mands