When government borrows money from citizens, they would
return this money back to the person the same way a bank would. They would give it in the form of bonds that can
be sold to speculators. Problem is that it would be sold at a lower value.
The first reason was the Bolshevik Revolution that happened in 1917 and the second major reason was the strikes organized by the workers in the United States. The government was afraid of the chance that communism would take hold in the United States and that is the reason for the raids and prosecution of the individuals who were thought to be anti-American.
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Most colonies lacked human labor, therefore, they used slaves to work on plantations in the new found colonies.
