The Barre daily times. (Barre, Vt.) 1897-1959, 1918-09-04
FINANCIAL BASIS
OF UNITED STATES
LAID BEFORE 1916
1t Was During the Period from War of
1912 That the People Began to
Feel Their Nationhood in a
Marked Degree.

Washington, D. O., Sept At has
been said that the real financial founda
tion of the United States was laid dur.
ing the period intervening between the
war of 1912 and the war with Mexico,
which began in May, 1916.
1t was during that period that the
people began to feel their nationhood in
a marked degree, settlements were ex.
tended to the Pacific coast and con.
tlnual stream of desirable immigrants
locked to the United States.
In the two or three years immediately
preceding the Mexican war, more than
$4,000 immigrants landed on American
shores and every one was welcome. al
the industrial and agricultural expansion
OF the country was so great that there
were splendid opportunities. BY 1916
there were 5000 miles of railroad lines
In operation and they were being rapidly
extended.
Another important event which had
direct bearing on the financial prosperity
OF the United States was the removal of
import duties by England in 1912. This,
with the growth Of the manufacturing
industry in England, caused tremendous
importation from this country, particu
larry OF cotton and food products, and it
had a stimulating effect upon the entire
nation.
The financial system of the country
rested upon sound basis. Prejudice
against internal taxation which had
itself during the early DAYS
and which was felt especially during the
war of 1912, had disappeared entirely
and except for certain political meas. |
ures, and those OF a minor nature. the
people were firmly united and cheerfully |
met the excise duties which the exigen |
lies Of the times placed upon them. The |
banking system had been reorganized, |
'ub.treasuries had been established and
he country was far better prepared to
inter into war with Mexico than it had |
oeen to undertake the second war with
England in 1872
The Mexican war was of short dura
ion, lasting only about two wears. and
caused no serious financial depression.
The revenue from import duties and in.
ernal taxation was such that there was
10 need to adopt a plan Of emergency
axation, with the result that no extra
'urden was placed upon the people.
The expenditure of the war depart.
nent from April /, 1916, to April I, ls4e,
gere SSO,S45, ll6, as compared with the
expenditure of S2l,99l,l23 during the
revious three years During the period
I the war the navy department spent
lS,75S,000, which was little more than
100000 in excess of what that depart
1ent had expended for the two and
alf years before the war.
To meet the excess of $63,60562 Con-
ress decided upon the method adopted
uring the war Of 1912 and authorized
everal issues Of treasury notes and gov.
stock. The results were far diff
erent, however, for while the issues dur
az the war of 1912 were disposed OF /
nth great difficulty and one issue at
.ast had to be sold below par, the issues
1876 were in such demand that they
'ere oversubscribed and under one of
he loan acts, when subscriptions were
lyited for SlSQ00000, bids were received ,
pr Sol, $4,000, and these were made at !
ates varying from one-eighth Of / per /,
snt to 2 per cent more than par.
This was the first loan negotiated on :
asis of this kind since the foundation of :
ne government and it was due entirely
, the splendid prosperity of the times !.
nd the solidity of public credit.
Following the war period the country
to expand commercially, the !
iscovery Of gold in California had
arvellous effect upon national prosper
y and immigration continued upon
rger scale than ever before, more i'm.
igrants coming between IS45 and 1855
ian in the preceding Is years. The ad- :
tion of the large territory ceded by !
exico increased importations, and the
ltire western country possessed re- 7
,urces which were only in an embryo Il
ate Of development, but which offered !
lch wonderful possibilities that it was (
,nerally realized that the nation was at l
le threshold Of a new commercial era. i
While the national debt had been in II
eased from Sl5,650,000 to 1858 04 900 9
? war loans, this was reduced so rapid il
that in 1857 the principal was but
100000. In this Furnishing condition a
ie country approached the Civil war. Il