reduced had we issued no paper and (2) thereby not increased the prices of goods to the state, and (3) if no interest account had been created by borrowing. But could the country have raised the whole sum each year by taxation? In the first fiscal year after the war the United States paid in war taxes $650,000,000. At the beginning of the struggle, to June 30, 1862, the expenditure was $515,000,000, and by June 30, 1863, it had amounted to $1,098,000,000; so that $600,000,000 of taxes a year would have paid the war expenses, and left us free of debt at the close.
A confirmatory experience is that of England during the Continental wars, 1793-1817:
| Total war expenditures | £1,060,000,000 |
|---|---|
| Interest charge on the existing debt | 235,000,000 |
| Total amount required | £1,295,000,000 |
| Revenue for that period | 1,145,000,000 |
| Deficit | £150,000,000 |
To provide for this deficit, the Government actually increased [pg 087] its debt by £600,000,000. A slight additional exertion would have provided £150,000,000 more of revenue, and saved £450,000,000 to the