New-York tribune., 1908-01-15
GERMANY'S FINANCES.
INFLUENCE OF AMERICA.
A Vie7o of attack on Trusts
Greater Coinage of SiIUer.

Berlin, Jan. H-In the of interpella-
ton in the Reichstag to-day in reference to the
high rate of discount charged by the Imperial
Bank, Count Won Kanitz, Conservative suggested
that President Roosevelt was responsible for the
critical financial situation existing to-day all over
the world. The direct cause of the troubles. ac-
cordng to the speaker, was to be found in the
| Presidents threats against the trusts" Count
Kanitz said that the opponents of the trust
must recognize that interference with the financial
activity of the United States. which is based on
the operations of the trusts. means interference
with the entire economic situation in America
Americas has been that she allowed the
trusts go long without interference" said
the speaker.
Count Won Kanitz then reviewd what he called
the "frenzied finance Of America in the last few
months, and mentioned the recent fight for gold
in Europe. He said that the amount of gold leav-
ing Europe could not be estimated exactly, but
that in the month of November alone 1S00o,GO
marks (about $39,500,00O had left Germany for the
United States He added that the assistance given
by the American Treasury Department had little
effect in improving conditions.
Count Won Kanitz pointed out the unfavorable
commercial balance of European nations. particu-
larly Germany toward the United States. He took
issue with the American statistics concerning for
eign trade, saying that in 1906 Germany had i'm
ported American goods to the value of 1886 900 900
marks and had exported TO the United States only
636 900, 900 marks worth This left a balance of
600 100000 marks in favor of the United States but
the American statistics estimated this balance at
only 391, 900 600 marks. This balance had not been
made up by shipping profits and dividends on
American stocks in German hands.
NEED OF MORE MONEY PREDICTED.
In addition to these unfavorabe balances another
factor in the situation the gigantic sum of
thirty million marks insurance which Germany had
loyalty paid in connection with the San Francisco
disaster, although the German companies were not
legally bound to do The speaker expressed tie
opinion that the United States would need much
more money and that this would from
Europe He then asked what would be
adopted to prevent this outflow, which high
bank rate of discount could not keep back. He
suggested a moderate return to bimetasm by
issuing in Germany silver coinage to the amount Of
twenty-five marks head. He upheld the method
of the Bank of France which issues silver coinage
to the value of forty marks head of population
as model in this connection, saying that this sys
tenn permitted France to have such enormous
gold reserve. The shortage of money, according to
Count Won KanitZ, made the restoration of orderly
financial conditions doubtful. particularly there
were indications that a period of industrial ad-
versity waso beginning. At the beginning Of De-
cember there were in Berlin alone twenty-three
thousand skilled workmen without employment,
and since that time these figures had been in
creased greatly.
Referring to the prospects of floating the new
loan, Count KanitZ said these were most un-
favorable He certain that interest at the
rate of per would be necessary and that this
would affect the other state obligations. Industrial
shares had recently lost fully one-quarter of their
value
LARGER SILVER COINAGE PROMISED
DR. TheobaId Bethmann- -Howeg, Minister of the
Interior replied to Count Kanttz concerning
Cermany's solid financial situation, but he did not
touch on the question of Germany's special fnan-
cal relations with the United States. He said
that the causes of the present scarcity of money
in the German market could be traced to the con-
tinuous Improvement in recent years OF the eco
nornic situation in Germany. The number of pros
perous industrial and commercial undertakings
was greater in proportion than the increase In
population. Furthermore, the growing compiexity
in the exchange of commodities had caused an ex-
traordinary demand for capital and currency, anc
this had been satisfied only by unusual increase
I'm the rates of interest loans. The situation on
the international money markets had influenced, In
the last few months, the relations OF German
debtors and creditors. The reduction yesterday OF
the Imperial Banks rate of discount by per cent.
however indicated that with the beginning of this
vear the strain on the bank had materially dimin-
ished The financial pressure on London. Vienna
and Paris also had decreased, which was shown
by the reduction in the rates of discount at tnese
capitals All things considered. the minister said
the monetary and industrial situation In Germany
was most healthy.
DR. Bethmann-Hollweg announced the intention
of the government to bring in measure at the
nresent session of the Reichstag modifying 10 4
certain extent the present currency law SO that
with the increase of population there could be an
increased coinage Of silver