New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

Although Canadian territory has es-
capped the actual and direct ravages of
war, nevertheless the Dominion, like
the United States in 1855, has been
conclusion of the Civil War the United
States had public debt of approx
mately $2,675, 100000, as against less
than seO,O0p,000 in 1860. Before the
recent war Canada's net Federal debt
was only about 1886, 10000; at the end
of March, 1921, it was officially re-
ported as $2,311 ,294,444. The wealth
of Canada In 1914 was estimated at
only slightly more than the wealth of
the United States at the beginning of
THE Civil War, and the population Of
1.-THE United States in 1866 was approxi-
mately 35,000,O00, as compared with the
\ present Canadian population Of less
Enhan 100000. The per capita debt of
1.-THE United States increased from $1.91
Hin 1861 to S76.98 in 1865, as compared
with Canada's per. capita debt at the
present. time of about $3.50. But al
almost as large in amount as was the
debt of the United States at the con-
lclusion Of the Civil War, it is in much
more convenient form. Indeed, through
| out the recent war period the admin
fstration of Canada's public financing
was in striking contrast to the vacillat-
ing financial administration Of the
United States during the Civil War. 1t
has been said of the United States Civil
War debt that "Mght-ninths Of it
consisted Of transient forms, is
sued under laws made up to a
large extent Of incomprehensible
over the mass to one man and
expressing in thefaggregate nearly one
! hundred contingencies Of duration,
1 option, conversion, extension, renewal
ETC." The problem of refunding in
l evitably was complicated by this stu
! alton. On the other hand compare
/ lively little difficulty is expected in
connection with the refunding Of the
Canadian war debt. A portion Of She
principal Of the first war loan-some
$194.870, 00O-falls duo in December
| 1922, and the Finance Department is
1 now studying the whole question In
order to be fully prepared to deal with
whatever problems may be presented
bv the several issues as they mature.
Taxation Difficulties
Taxation involves much greater dif-
| ficulties. Like the United States. prior
tic the Civil War, Canada was depen-
l
airon tho customs tariff to provide the
revenue required by the Federal gov
eminent. Neither country had found
( 1t necessary to resort to heavy direct
I taxation. Neither government had
Mad much experience in large fnanc-
ing operations, such as were neces-
/ STATED by war exigencies. In neither
scountry were the people generally edu-
fcated, before hosti.ities commenced. to
Sthe purchase of public securities. The
early part Of the war was financed in
each case by public borrowing. But
| in 1862 the government of the United
| States imposed many internal taxes
/ and also increased this customs tariff
duties. In 1864 the system Of internal
revenue taxes was greatly extended
and the tariff was augmented by an
| increase in the average rate on duti.
able commodities from 372 per cent
| 20 Al per cent. The Federal income
tax. first imposed in 1861, was re-
neatedly increased. so that bv 1865 in
4 comes between $500 and $4,000 were
taxed at 5 per cent and those above
$4,000 at 10 per cent
/ In Canada the first taxation resort
| after the commencement Of the war
J was to an increase in the customs