New-York tribune., 1907-10-14
GERMANY'S FINANCES.
roN RHEINB4BEN'S VIEW.
Str1ngency Due to Prosperity-No
Fears for United States.

ii, ort l3-Baron Won Rheinbaben, Prus-
= Minister Of Finance. to-day gave an inter
- regarding the campaign being made in GER
- pa ris and London newspapers against the
.-Ta;tv Of German credit. in which it has been
se 10 appear that Berlin bankers have
-, 70 influence the foreign policy Of Ger
- nv urging that French money is neces-
- IN fhe present situation 10 uphold German
...b,c and private finance. The Baron said:
,,e scarcity Of money in Germany is one
1rrsso,,ence Of our extra ordinary prosperity.
- creation Of additional means of production
~ me immense extension Of commercial oper-
an ia,r have absorbed the existing capital, and
b. b. fresh accumulations derived from current
ustxi,y Many holders Of state securities have
% them TO meet industrial requirements or TO
hare with their money in the higher dividends
sc - a-,sreTftz German government stocks have
-. felt this tendency more than those of some
% the other European countries, although il
u Y4'r5 not have been unrea sonable II they had
80 90 because in Germany the investment of
o- -.,,.~s bank deposits and of the holdings of
- llr7ds of trusteeshipS is not compulsory to
sEa extent that IT is in France and England,
~bere -. immense sums are kept continuously in
roIe by the operation OF the law in the same
~sT,,er as the national banks in the United
e.eses are required TO invest i'm government
Ss We should do the same in Germany. and
have drafted a bin on the subject of savings
banks 60 .,, ,o -. ,oa, s,,s
..naS IN this way 10 the extent they have in
sssr countries. they have not fallen proportion
o,siv more. II foreign countries wish 10 buy our
sxoeI,ent and strongly guaranteed government
,art We are agreeable, but we have no occa-
sion 10 take any steps whatever TO induce them
r. 40 So
british consols dropped from 112 in 1897 10
ar average Of 50 in 1906. and 20 So now. The
Frereh rente from an average of l0S in 1891 is
nsx 9430, while German threes. which in 1897
were At an average of 81, now S525.
As an indication of the unusual prosperity of
Germany. the Minister referred 10 the increase
., the Pr1lssiar income tax returns. which grew
from q total Of S1.140 100000 IN 1898 TO S2.066-
10000 In 1896. while the returns for 1907 are
50 ss2 6e0o00 or more than. double those of
fourieen years ago. and more than 10 per cent
increase for one year. The same degree of pros
perity prevails in nearly all of the other German
states
Baron won Rheinbaben had before him the
figures Of property owned by the Prussian State
which stands as security for the state debt and
Prussia's share Of the imperial debt. The total
Prussian obligations are s1.560ooO.OO0. and the
Prssian proportion of three-ffths of the i'm
psriaI debt Of $T60,G00.00O would be $460Qo0000
or a total Prussian responsibility Of 5000,
ooo0oo State owned properties are estimated
TO be Eerth So GOO 600 600 which include ST.
5ooOooooO in lands and forests. $1,000 900 900
In railways and s14eO00Oo0 in mines and other
state undertakings
Concerning the financial soundness of the
United States, Baron Rhenbaben said:
have absolute faith in the undirnirished
prosperity OF the United States and in the GER
tainty that the present stringency in the money
there as in Germany, is closely connected with
the great demand of development. We rejoice
over Americas prosperity a good friends and
because the prosperity Of the United States CON
tributes to our prosperity. Americans buy more
fToTr US when they have great deal Of money.
WITH your constant expansion in the hon mar
ket and almost limitlesss internal expansion the
Americans are not 'iteiy 10 compete sharply in
our own markets. have not been able TO per-
eeive the least indication that the United States
IS in anything like serious difficulties
Baron Won Rheinbaben. who pleasantly re-
members the hospitality which he enjoyed dur
ing his visit TO the United States IN 1905. has
been since then n close observer Of affairs in
that country