814 



UNITED STATES, FINANCES OF THE. 



war expenditures. No receipts from either taxes or 

 bonds, however, appear to have entered into the 

 accounts of the fiscal year in question. 



The ordinary expenditures during the year in 

 question, exclusive of the postal service, amounted 

 to $443,368,583. a net increase over that of the pre- 

 vious year of $77,594,423. This increase was mainly 

 due to the action of Congress in the anticipation of 

 a war between this country and the Kingdom of 

 Spain. Under date of March 9, 1898. an act was 

 approved appropriating for the national defense the 

 sum of $50,000,000, to be expended at the dis- 

 cretion of the President, and a large portion of it 

 was disbursed before the close of the fiscal year. 



The monthly debt statement shows that at the 

 close of the calendar year, Dec. 31, 1898, the public 

 debt for which no reserve is held was $1.323.940,- 

 981, a net increase for the year of $189,354,645. 

 There was a decrease of $3.399,332 on the amount 

 due on the national bank redemption account and 

 some unimportant changes in other items. The in- 

 crease was mainly due to the issue of the new 3-per- 

 cent, bonds, authorized by the act above mentioned, 

 to the amount of $192,846,780. The act provided 

 that the bonds, if sold, should at first be offered at 

 par as a popular loan in such way as would give the 

 citizens of the United States an opportunity to par- 

 ticipate in the subscription, preference in the allot- 

 ment being given to subscriptions of individuals, 

 the lowest amounts to be first allotted. The bonds 

 were dated Aug. 1, 1898, and subscriptions were in- 

 vited June 13, 1898, to the amount of $200,000,000. 

 The United States bonds of other issues were at 

 that time selling at such a rate above par as to in- 

 sure the success of the new loan beyond question. 

 Promptly upon the issue of the invitation for sub- 

 scriptions there came a response from every section 

 of the country, and upon the close of the thirty days 

 prescribed as the period for subscriptions there had 

 been received at the department 232,224 subscript ions 

 for $500 and less, and 88,002 for more than $500. 



The total of subscriptions of $500 or less was $100,- 

 444,560, but the aggregate subscriptions somewhat 

 exceeded $1,400,000,000, a sum greater than the en- 

 tire public debt then outstanding. Before the bonds 

 could in the course of business reach the subscribers 

 they were worth a premium of 1 to 5 per cent, at 

 least, and have not since been lower. 



The following tables show the receipts and ex- 

 penditures in detail for the two years, including 

 transactions in the postal service : 



RECEIPTS. 



EXPENDITURES. 



The following table shows in detail the changes 

 in the debt during the calendar year : 





