It was prophesied that in spite of the enormous financial obligations assumed by the United States normal conditions would soon be restored. History shows, the circular goes on to say, that financial recovery from devastation has been prompt and complete. Even the railway conditions at this time were viewed optimistically. Such a competent authority as the _Wall Street Journal_ did not anticipate the financial troubles that soon overtook railway administration under government control. It thought that, by the end of the year, the existing debits on current operations would probably be wiped out: "Aggregate railroad earnings and expenses for July of all the important roads in the country are in line with the individual statements of the different roads already published in showing large increases in both gross and net revenues. They also indicate, so far as one month's operating results may be used to generalize from, that the railroads are now on a self-supporting basis, if they are not actually returning a profit to the government on current operation. "Net operating income of these roads for the month of July (1918) was $137,845,425 as compared with $92,599,620 in the same month of 1917. In a recent statement from the Director-General's office the compensation payable to the railroad companies for the use of their property by the government was estimated at $650,000,000 for the first eight months of the year, or at the rate of $81,250,000 a month. The net operating income of the Class 1 roads as mentioned above exceeds this monthly rental figure by $56,595,000." THE FIRST GOVERNMENT LOAN, 1789 Although called by other names, the United States has had issues of Liberty Bonds on several occasions during a period of one hundred and twenty-nine years, notably in the first years of the Republic and in the Civil War. The first was floated in 1789, the year when the Federal Government was established. Alexander Hamilton was Secretary of the Treasury and on him devolved the duty of raising funds for the government.