NATIONAL DEBTS OF THE WORLD. Debt incurred by the nations has developed with startling rapidity in recent years. National debts in the year 1700 were, as nearly as can he determined, about $1,000,000,000, and in 1800 approximately $5,000,000,000. By 1900 they had grown to $31,000,000,000. At the beginning of the great European War in 1914 they were about $45,000,000,000, and in 1919 aggregated $225,000,000,000.
The first great increase in national indebted ness of the modern period was that caused by the Napoleonic Wars, which in 15 years In creased the national debts of the world from $2,500,000,000 to over $7,000,000,000. From 1814 down to the middle of the century, a period of comparative peace, the growth of the national debts was slow, the total of all the debts of the countries for which statistics are available having been' in 1850 approximately 9 billions, a net increase of hut about 2 billions in 35 years. Then came the heavy expenses of our own Civil War, also of the Crimean, Franco-Prussian and other wars, and by 1874 the world's total stood at 22V2 billion dollars. By 1900 it was 31 billions, and at the beginning of 1914 45 billions. Then with the demands of the European War upon the nations participat ing the already large total was practically quintupled, advancing from 45 billions in 1914 to about 225 billions in 1919, and this does not include the large sums of paper currency issued by the warring nations to meet such part of their current requirements as they were unable to provide by bond issues.
While wars are usually looked upon as the great cause of the rapid growth of national in debtedness in the past century, a careful con sideration of the history of this growth shows that much of the increase prior to 1914 was due to other causes. In the 40 years between 1874 and 1914, in which national indebtedness grew from 22% billions to 45 billions, there were few costly wars. The great European nations increased their standing armies and navies, this armed peace adding greatly to their expenses and in some cases to their indebted ness. There were, however, other causes. The period was one of great activity in develop ment of the new areas of the world. South
America, Africa, Canada, Mexico, Australia and New Zealand show a rapid development in that period, in railways and other trans portation facilities, and a large proportion of such development was met by the governments, which necessarily contracted large loans for that purpose. In many of the European coun tries great railway systems were developed at government expense, which necessitated large borrowings. The railways of the whole world in 1874 were about 150,000 miles, and in 1914 over 700,000 miles, of which about one-third was government owned. Telegraphs, owned in most countries by the government were in 1874 hut 300,000 miles and in 1914 1,500,000 miles. Many public improvements other than railways and telegraphs were also made at public expense. Harbors were deepened, rivers made navigable, inter-oceanic canals created, great and costly buildings erected and as the debt grew, so did the burden of interest.
Other causes, however, contributed largely to the °debt habit' among nations. Among these contributive factors were the increase of world money, and increase of wealth, which made borrowing by nations comparatively easy when contrasted with earlier conditions. Down to 1848 the world's production of gold was but about 12 million dollars per annum, in 1860 it was 122 millions per annum, in 1900 it amounted to 254 millions and in 1913 to 460 millions. The total money of the world, gold, silver and uncovered paper, as estimated by competent authorities, was in 1800 about 234 billion dollars, in 1850 a little over 4 billions, but by 1900 had grown to 12 billions, and in 1913 was 18 billions. The world's money— gold, silver and uncovered paper — practically trebled in the 40 years in which the national debts doubled and this increase in available currency encouraged the borrowing habit among nations. With the entrance upon the European War the issues of paper currency rapidly in creased, the paper money issued by 15 respon sible governments of the world during the war period aggregating $36,000,000,000; and during that same period national debts increased $180, 000,000,000, bringing the total national indebted ness up to $225,000,000,000 in 1919.