THIS
North in Financial Troubles
By MESTON T. AKER8
UPI Correspondent
Northern armies seemed to
be losing the Civil War in the
early summer o( 1882; the fi
nancial structure of the coun
try was quivering - but the
nation flexed its muscles and
demanded expansion, war or
no war.
The finest Federal force so
far - the Army of the Poto
mac - was fenced in on the
James river in Virginia, bitten
by mosquitoes and wracked
by malaria.
Another Federal army of
bits and pieces was being or
ganized by Ma. Gen. John
Pope in northern Virginia.
(President Lincoln had high
hopes for this new army.)
The big army in the West
was broken up into garrisons
and middle sized forces. When
It moved, if it moved at all,
It was with the alacrity of a
sick snail.
National finances were in a
mess when the second session
of the 37th Congress met in
the winter. To pay its bills
the Treasury needed $350 mll-
POWUFUL NEW PLUNGER CLEARS
CLOGGED TOILETS
in ojiffyl
NIVER AGAIN that sick ftalfftf
whn vsur tofltt verfUws
TOILAFLEX-
Toilet Plunger
Ordinary plunger juit don't seat
properly. They permit compressed
air and water to splash back. Thus
you not only have a mess, but you
lose the very pressure you need to
dear the obstruction.
With "Toiltrlex", expressly designed
tot toilets, no air or water can es
cape. The full pressure plows through
the clogging mass and awishea it
down. Can't misst
t DOUBLE-SUB CUP. DOUSie-FftCSSUM
BCSIGNEO TO FLU AT ANY AN OLE
CENTERS ITSELF. CAN'T 8KtO AROUND
TAPERED TAIL OIVEI AIR-TIOMT FIT
$265
fully auar.nt..d
T HIIIIWRE STOKS EVERYWHERE
TRAD'N
VH 240
i Temperature Zone
Fercelain Tub
Ne Special Wltio,
Safety Start Central
laiy Reach Lint Filter
1 Yr. Uncendltlenal
Guarantee
1 WAYS TO IUY
1. Ci.h
2. 0 Days N HeneMirif
Charf a
I. litenJad Term
NO DOWN PAYMENT
1ST PAYMENT
IN SEPTEMBER
Lilrij-i H
. law I - I 1 I i I I -.Ai-1 A i
lion by July 1, 1862, a stagger
ing sum for that day. No such
mm was in sight, either in
taxes or from the tale of U.S.
bonds. Late in 1881 banks had
suspended specie payments;
that is, you could not get sil
ver or gold for current paper
money. The treasury had to
have a dependable currency
to pay its soldiers and war
contractors and to keep busi
ness alive so it could pour in
battle supplies.
Issue of Greenbacks
The answer seemed to be
an issue of greenbacks which
would be legal tender for pay
ment of debts. In other words
"turn on the printing press
es." The Issue split Congress
into "hard money" and "legal
tender" camps instead of Re
publicans and Democrats.
Secretary of Tn sury Sal
mon P. Chase, normally a
"hard money" man, reluctant
ly swung over to the legal
lender side. By spring a $150
million issue was authorized
by Congress.
But the Congress also set
up two balances which in part
offset the inflationary aspect
of the printing press curren
cy. A system of rational banks
was authorized with provis
ions for currency based on
treasury bonds.
A stiff system of taxes also
was voted, including imple
mentation of the nation's first
income tax which originally
had been authorize ' in 1861.
Annual incomes from $600
to $10,000 were taxed 3 per
cent and incomes above $10,
000, 5 per cent - later raised
to 10 per cent.
Liquor, beer and tobacco
taxes also were raised. Lux
ury goods, such as carriages,
yachts, billiard tables and
confectionery, were taxed for
the first time. Many manufac
turers paid a 3 per cent tax.
It cost 30 cents in taxes to
butcher a cow and a dime to
dress a hog. Businesses paid
a franchise tax. Every con
tract, bank check and legal
form had to carry a tax stamp
before it was valid. The tax
law was thorough and it took
more than 20,000 words of
schedules to spell it oujt.
Taxes Yielded Well
While these excise uxes -
the first in the nation since
1821 - hit the North In the
pocketbook, they yielded well
and in a large measure paid
TIME!
Percelein Ift.Ue
and Out
10 L.
Tufc Ca-
eelty
Small Leee
Wilir Central
TrlpU Rimini
Genuine 3 Cycla
Full Tim
Underweter
Filter
S Yr. Trammit
sien Warranty
Reg. $36.W
$2990
FOR
BOTH
With Teur Trade
Operatlni er Net
WE SERVICE
, MOST
MAKES
ri 1115
Phene 772-4131
er 772-2eS
the war bills. (In the last year
of the war the excises poured
$311 million into the Treas
ury.) However dreary the finan
cial picture, the country was
in no mood to hide in its shell
and postpone expansion sim
ply because there was a war
going on.
With the Southerners out of
Congress, advocates of a
homestead bill moved to
achieve their long-sought goal
of free land for anybody who
cared enough to work for it.
Southern congressmen had
successfully fought a h o m e -stead
act because it would
have meant opening western
lands, most of which was not
suitable for slaves to work.
That would have meant even
tually more free states and an
end to southern domination
of Congress.
Homestead Act
Now a homestead act was
hustled through Congress
with hardly any opposition.
The act provided that any citi
zen or anyone who declared
he wished to be a citizen -whether
man or woman over
21 - could, by payin. $10 and
small legal fees, pre-empt 160
acres of land from the 2 bil
lion acres the government
owned. By living on the land
and working it for five years
he could perfect his title.
Lincoln signed the bill into
law on May 2, 1862, and the
magic words, "free land," be
gan to ferment even in distant
lands. Those words would fill
the West in 30 years despite
the fact that much of the free
land hardly was worth the
taking.
But "free land" was not
enough. The country must be
connected by the steel bands
of a transcontinental railroad.
Late in '61 copper strands had
linked the West Coast to the
East by telegraph. Now it
must be paralleled by a rail
road. There had been much dis
cussion of a transcontinental
railroad for many years. But
this expansion, too, had been
blocked by Southern congress'
men indirectly. They Insisted
the railroad must run along
the southern border of the
states. Jefferson Davis - then
secretary of war, now presi
dent of the Confederacy - had
engineered the Gadsen pur
chase from Mexico to provide
part of the right-of-way.
Northerners were equally
insistent that the road must
go west from Chicago or St,
Louis. (Both were linked to
the East by trunk lines.) Nel
ther side could carry the day
and there the situation stood
at war time.
Railroad Bill
After considerable debate
Congress passed the Pacific
Railroad bill and Lincoln
signed it on July 1, 1862. The
Union Pacific was authorized
to build west from Omaha,
Neb., and the Central Pacific
to build east from San Fran
cisco to the California-Nevada
line. The government gave
each road a 400-foot right of
way and five alternate sec
tions (640 acres each) of land
on each side of the road as it
was built. The government al
so agreed to lend the roads
$16,000 In U.S. bonds for each
mile built on the plains, $32,-
000 per mile in hilly land and
$48,000 in mountains.
The roads were to be fin
ished by 1876 or be forfeited
to the government. (Actually
they were completed in 1868.)
Money for Collects
The Central Pacific started
building in 1862 and the Un
ion Pacific in 1864.
The day after he approved
the railroad bill, Lincoln sign
ed the Morrill act which pro
vided means whereby what
are known now as Land Grant
colleges could be set up.
States were empowered to
MEDFORD MAIL TRIBUNE. MEDFOHD, OREGON
0
mm tt WtiRKAtiMaiait, Ait,
NORTH DEMANDS EXPANSION In the
summer of 1862, the Northern armies seemed
to be losing the Civil War and the financial
structure of the nation was quavering, but
the country demanded expansion war or
no war. On the military side, a new Fed
eral army of bits and pieces was being form
ed under MaJ. John Pope, left, in nothern
Virginia. On the financial side. President
Lincoln, center, and his Secretary of the
Treasury, Salmon P. Chase, right, were
backing certain measures designed tn
select 30,000 acres c public
land for each senator and rep
resentative andtouaethe
money from sale of the land
for colleges. The program was
slow getting under way but
eventually it resulted in a
solid contribution to educa
tion. Many who voted for the
Morrill act living to see land
grant schools become great
institutions of learing.
Agriculture also won a
place in national government
in this expansion era. In May
Congress voted to establish
Department of A g r iculiure
which was charged with pro
viding farmers with informa
tion, seeds and plants. Isaac
Newton, a Pennsylvania farm
er and a Patent Office clerk,
was named to head the new
department at a salary of $3,
000 a year.
Burma Cracks Down
On Rioting Students
Rangoon, Burma 4UPD The
government cracked down on
disgruntled university stu
dents today following week
end rioting which left at least
16 persons dead and more
than 60 Injured.
The ruling Revolutionary
Council enforced stricter
d i s c 1 p linary measures and
stationed police and troops
around the Rangoon univer
sity campus to thwart further
trouble.
The casualties occurred Sat
urday night when troops fired
on thousands of students who
rioted in protest against steps
taken by the Revolutionary
Council to impose discipline
In the universities. Ten stu
dents were arrested.
APPRECIATE MUSIC
Leichester, England - H'fD
Music appreciation is the fav
orite course at a prison here.
Least popular is English.
HAWAII
Only $23267
(Mb
ROUND TRIP AIR TICKfT from
PORTLAND
GO ANY DAY
IIS I0EING 707 JETS
1S-DAY EXCURSION FARE
MAKE RESERVATIONS TODAY
See George Lewis
V
Business
Expansion in the
GREENBACKS ISSUED I '
750 MILLION , '.
I NATIONAL BANKS
- , I ENTIRE SYSTEM AUTHORIZED
TAXES INCREASED 1 A' t
$311 MILLION. M
FREE LAND
I HOMESTEAD ACT PASSED
RAILROADS I '
UNION PACIFIC AUTHORIZED $
'A.' I LAND COLLEGES
& , "fr .. PUBLIC LAND AVAILABLE
neat U .
Kennedy 'Shocked'
Hyannis Port, Mass. -iUPO-President
Kennedy Sunday is
sued what he called "frighten
ing" statistics showing that
one-fourth of the nation's 40
million school children cannot
pass even a simple screening
test of physical fitness.
The President also said It
was "shocking . . . that at
least 60 per cent of our chil
dren do not participate in
daily program of vigorous
physical activity.
The statistics resulted from
pilot projects and surveys con
ducted by the President's
Council on Youth Fitness. The
surveys consisted of a scien
Why spend it getting there? Go Greyhound to "Century 21"
and use your savings to sightsee the first U. S. World's FaT
in over 20 years! There are no lower fares to the Faif ...
and there's an exciting Greyhound Tour to fit ewey budget!
SEATTLE PACKAGE
TOURS
3 Days $44.20
4-Day. 5.90
ROUND-TRIP FfBr tn SFITTIE
$20.55 plus tax
"'6r'nMl'iA' a' Fa
fKV1 Mjh' al
J. A. TOMJACK, AGENT
5th and Bartlett 772-2202
-LSf-. A
c
North . . .,62
strengthen and expand the economy and to
block further inflation. Some of these meas
ures included the issuance of greenbacks,
authorization of a National Bank system, an
increase in taxes, thousands of acres of
land being made available under the Home
stead Act, authorization of a railroad to the
west coast and the turning over of public
land to the states for building and support
of colleges. This chart, drawn especially for
the series, shows the measures and the men
behind them. (UPI)
By Lack oi Fitness
tific sampling of the nation's
108,000 public and 16.500
parochial and private schools.
Afmospheric Test
Delayed in Nevada
Nevada Test Site- OIPB
A low - yield atmospheric
nuclear test was on a 24-hour
weather hold today after
desert winds forced the third
cancellation of the shot.
The firing, described as an
atmospheric test to analyze
nuclear explosions, was post
poned by the Atomic Ener
gy commission and the De
fense department and re
scheduled for Tuesday.
BARGAIN PACKAGE TOURS
INCLUOC:
Hotel accommodations.
Monorail to Fair Grounds.
Admisiioa to Fair.
titra land and water light
seeing trips.
Add low round -trip far 10
Seattle.
ibrilri "Doi"'"' Mflfi'th" a nanni eiye.rfl'in! tnj
i SrrtMt crfT'r' '" 'mtim oioi.rft'kU'i leuer,
r uu s'0 icl'vit'". Tw-n "le" fair, er' Br'W. D'u tit.
Census Reveals
Reason for News
Shareholder
New York - (ITU - A com
parison of the figures in the
New York Stock Exchange's
recent stockholder census and
earlier reports on the extent
of the shareholder population
in other countries help show
why stock market actions are
more often front page news
in the United States than else
where. While the dip in the mar
ket during May attracted at
tention oversea, and brought
sympathetic reactions In stock
markets abroad, similar oc
currences in foreign securi
ties markets would be felt
personally by far smaller
shares of the population, the
figures indicate.
The NYSE census put the
number of stockholders in this
country at 17,010,000 In 1962,
a rise of more than 4.5 mil
lion from the estimated 12.5
million of 1959. This repre
sents nearly one of every six
adult Americans.
A recent exchange study on
individual sharcown e r s h I p
NflDEBILIE'S
for women
Air Step shoes
IVow
790 ffi90
Casuals
S90
90
arjw
790
On Ut Olrls' On Ut Children!
Tennis Oxford Nylon Dress Pumpt
lack Hue He1
190 v,,0 190
Wman' Wm
Straw Casuals Dress Shoes
Mae-e la Italy Net AN Jlaee
Value to AQQ Value C90
MS Now Q 13.S. Only jj
NOBLE'S SHOE
MONDAY, JULY t,
around the world showed that
there has been growth else
where. It has not been as
widespread as that in the Un
ited States, reflecting in
many nations that economies
faced a rebuilding process in
the postwar years, and that
private enterprise faced han
dicaps not found here.
Not all of the figures for
other nations were as up to
date as those in the share
holders' census for the Unit
ed States, and for many na
tions no information on the
total number of stockholders
was available.
In the United Kingdom (pop
ulation about 50 million), a
May, 1980 Gallup poll put
the number of share holders
at an estimated 3.1 million,
a figure double that for the
number immediately after
World War II. On the basis
of shares traded, the London
Stock Exchange is the larg
est in the world, the NYSE
noted, and In recent years has
pushed a program to attract
broader ownership.
DISLIKES COLOR
Poole, England-WK-Health
worker Winifred Bennett has
resigned rather than accept a
town council ruling that she
wear the official brown uni
form. "That color doesn't do
anything for me," she said.
formerly Buster Brown Shoe
and Dress Flats
Values to 7.95 Now
490 5m
Life Stride
and Galaxies
Values to 12.95
90
Children's Shoes
Many That Can B Used far School
Men's Shoes
Values to 1 1 .95-1 2.95-1 4.95 Now
90
formerly Butttr Brown
A S
It J 191 y
we are celebrating
25 years of service ;
to the HARD OP :
HIARIN :
VOU'M INVITBO T OUft
OPEN
HOUSE
Join ut si our birthday parry
all week, 9 a.m. 10 5 a.m.
See America's finest Kite ef
quality Hearing Aid.
Of MIDFOKD '
120 I. Mel 772.741
Store
Hand
Bags
Now Only
and
T)90
r ,He Tea
q90
9JJ
rtM Tai
Woman'
Golf Shot
10.9S Valuej
Not All Slim
590
Regularly PricttJ
13.95 - 14.95
S)90
shoes
shoes
90
5 90
S)90
STORE
1982
2
17 South Central
aAil
l' 1
ROGUE TRAVEL SERVICE
Aik About Our New "Ticket by Moil" Sarvlc
111 Eaut 8fh SC. 772-6779
t 1
13 So. Central
UMIWIILW IJU-SU-J
Fluhrer Building