These enormous financial transactions have no parallel for extent. in the world's history. Yet for a time there was much fear that such loans could not be floated: but when they were proved possible without recourse to the capitalists of foreign countries. the loyal people of the Union had abundant cause for congratulation. The loan of 1862 ($515,000,000) was the greatest in amount and the most successful thus far attempt ed. Afterwards, however. loans were not easily made, and the Government was compelled to re sort to eurreney and Treasury notes, and also compound-interest notes and eertificates of in debtedness. The greatest test of the financial strength of the nation fiercely struggling to main tam its politieal existence was in 1864. On July 11, in that year. gold touched its highest point. $2.55% and a paper dollar was worth in gold only about 38 cents.
From the period of the Civil War the surplus of revenue was applied to the public debt. As the bonds bearing the higher rates of interest were first extinguished. the interest burden di minished even more rapidly than the principal. Thus, while in 1865 the total interest-bearing debt amounted to $2,381,000.000. and the annual interest charge to $151.000.000, at its lowest point, in ic-192, of .z.5g5.000,000 principal, the interest in round numbers. $23.000.000. As the population had increased rapblly during the interval. the interest per capita had declined
from $4.39 to 39 'cuts. After 1893 the amount of public debt was increased by the issue of bonds for the pitrpose of securing the Treasnry against the drain upon its gold reserve. This issue of 5 per cent. bonds was followed in 1S98 by a further issue of 3 per cent. bonds for the purpose of meeting the expenses of the Spanish War. By the act of 14, 1900, the 3, 4, and 5 per cent. bonds were made convertible late 2 per cent. bonds, which resulted in a consider able diminution of the annual interest charge. The interest-bearing debt of the United States on July 1, 1900, was made up of the following: Bond.; t029,105,200 " 121t,543,240 " 517,579,220 5"1 " 47,671,200 Total The annual interest charge upon this debt is $33.545,130. The following is a statement of outstanding principal of the public debt of the United States on January 1 of each year from 1791 to 1842 inclusive, and on July 1 of each year from 1843 to 1900 inclusive: For discussion of theory of public debt, con sult: Adams, Public Debts (New York, 1890) ; Bastable, Public Finance (London, IS95) ; for statistics of public debts, Fenn, The Public Funds (London, 189S) ; Monthly Summary of Commerce and Finance of the Bureau of Statis tics of the United States Treasury Department, March. 1901 ( Washington). See FINANCE; BANK, RANKING; ANNUITIES: REFUNDING; MONEY.