the United States of America

From 1920 to 1930, despite their increase in total numbers, children from I° to 15 years of age in industry decreased from 1,060,858 to 667,118. The proportion which children of this age engaged in gainful occupations bore to the whole number of such children was in 1900, 26.1% for males and 10.2% for females; in 1910, 24.8% for males and 11.9% for females; in 1920, 11.3% for males and 5.6% for females; and in 1930, 6.4% for males and 2.9% for females. Two-thirds of employment of children was in agricultural pursuits, which are exempt from the restrictions of child labour regulation, the total in 1930 being Thanks to legal control, however, the number of children in manufacturing and mechanical industries declined from 185,652 in 68,266 in 1930. Geographically the proportion of children employed ranged from 1.4% in the Pacific coast States to 13.5% in the East States. Child labour showed a total decrease during 1920-30 of 37.1%.

National Wealth.

Mulhall has estimated the aggregate wealth of the United States in 1790 at $620,000,000, assigning of this value $479,000,000 to lands and $141,000,000 to buildings and improvements. It is probable that this estimate is generous ac cording to the values of that time. But even supposing $1,000, 000,000 a juster estimate, the increase in wealth from i790 to 1920 was more than three-hundredfold, or three times as great as the growth in population. The estimate of the national wealth of 1850 was $7,135,780,228, since which the increase has been more than fortyfold. The Census Bureau estimated the national wealth in 1900 at $88,517,307,000, in 1912 at $186,299,664,000, and in 1922 at $320,803,862,000. The National Industrial Conference Board estimated the national wealth in 1929 at $361,837,000,000; in 1932 at $247,300,000,000; and in 1934 at $286,200,000,000.

Establishment of the Financial System.

Under the Arti cles of Confederation, the Federal Government had been ered to borrow and to make requisitions on the States, but not to tax. Thus, it was largely dependent upon the States, which levied all taxes. In the first two years of the Confederation, Congress asked for $10.6 millions; the States responded with less than $1.6 millions. During the entire period of the Confederation, 1781 1789, the Federal Government received barely enough to meet current expenses, and not enough to meet interest requirements on the continuously rising debt. The national finances finally broke down completely in 1786: Further borrowing had become virtually impossible and requisitions yielded practically nothing.

This collapse, due only to the financial impotence of the Govern ment, was the immediate cause of the call in 1787 for a tional Convention.

The new Constitution, which came into effect in 1789, gave the Federal Government power to lay and collect taxes, duties, and excises; to borrow money, pay debts, and coin money and regulate its value. The States, on the other hand, were deprived of the right to coin money, emit bills of credit, make anything but gold and silver legal tender in payment of debts, or to lay any duties on imports or exports. Federal expenditures were re stricted to appropriations made by Congress. These new financial powers of the Federal Government were implemented by the grant to Congress of powers to provide for calling out the militia to execute the laws of the Union, and by the provisions making the judicial power of the Federal Government coextensive with its legislative power.

The creation of the Treasury Department, with a single head in preference to a proposed commission, and the appointment of Alexander Hamilton (q.v.) as Secretary of the Treasury, settled the next important financial question. Attention was then directed to making provision for the public debt. In addition to gifts of nearly $2 millions from the French and Spanish treasuries, the United States had borrowed some $11.8 millions (including arrears of interest) in France, Holland, and Spain. In addition, the domestic debt of the Federal Government, consisting of a great variety of obligations, was estimated by Hamilton in 1790 at $42.4 millions, exclusive of the Continental currency. Finally, the individual States, in the prosecution of the War, had con tracted debts of various descriptions, aggregating approximately $18.3 millions. Under the Funding Act of August 4, 1790, all of the foregoing indebtedness was converted into new Federal loans. Despite the great previous depreciation in value of nearly all the obligations, they were all paid off at par and accrued interest in new bonds, with the single exception of the Continental bills of credit. Some $6 millions of this Continental currency, of which about $78 millions was estimated to be outstanding, was funded into the new debt at the rate of ioo to one ; the remainder was not presented. This exceptional treatment was justified on the ground that the Continental bills had long since ceased to circu late as currency; and as far back as 1781 had been bought and sold by speculators at rates ranging from 500 to i,000 to one.