Government Bonds Quotes
This is an excellent historical quotations showing how our government financed the Spanish American War. Wars have always placed economic stress on the nations which wage then. In the American Revolution we borrowed from individuals and from France. After that all our wars were financed by a combination of war bond sales, other borrowing, and tax increases—all except the George W, Bush Afghanistan and Iraq Wars which were not funded thus complicating an economic crises caused by Bush’s Great Recession. While some critics saw Bush’s actions as reprehensible and irresponsible—it was the only time in American history where tax rates were cut in wartime, Bush’s team had a plan. They had an ideological point of view that said that major tax cuts would spur the economy and lead to MORE government revenue as a result of the growth that would come. However, in this case there not only was no growth, but there was the worst recession in American History. But there was a plan to finance the war—it just went awry.
Roosevelt was very candid with the American people that there would be high cost to war and sacrifice would be needed. See {584569} for other similar candor. This quotation was often used by critics of George W. Bush who initiated the Iraq War and then cut taxes for the rich, but then financed the war through the budgetary emergency appropriations bypassing the budget rules that the revenue must be specified to pay for it. His administration even claimed at an early stage in the war that the oil revenue from Iraq oil would defray the costs.
The Secretary was arguing to pay market interest for Federal borrowings rather than the 6% bonds which had been traditional theretofore.
With their slave labor cotton growing capacity, the American Southern states looked like good, safe, investments for British investors who were not concerned about the morality of slavery. However, what the foreign investors did not imagine was that the Southern states would create economic suicide and precipitate the Civil War.
The U. S. was bankrupt, and Dallas wrote to government bondholders announcement the formal stoppage of interest payments.
