Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-24
POLITICAL AND ECONOMICAL
SITUATION In GERMANY

There is nothing more serious in the
way Of a political issue at this mo-
ment than the financial
Shadow Of situation Of Germany. for
c.e 1t is that situation which
oAesy' holds her dogs of war; in
leash. 1t is this shadow on the polit-
ical barometer which, after the sigma
ture OF the Franco-German agreement,
prevents the mercury from rising.
Sir Edward Grey, at Plymouth. De-
cember 8, In a speech full OF sense and
humor, said:
Now that the Moroccan depression
has passed, We may hope to see the
diplomatic barometer rise Some of
my friends tap every FIVE minutes on
the barometric glass to watch it rise.
We may do well to leave 1T alone for
some days. Let us turn our attention
to the Christmas fetes and our interior
affairs. We should not tap too often
on the barometer's glass. for there is
a probability that when We consult it
again we shall find it rising and the
sky clearing"
Sir Edwards prophecy is too much
like those Of Delphi to be entirely re-
assuring. Public opinion, it should be
added, in England. as in France, views
with no little alarm the result of the
Franco-Spanish negotiations. which, it
Of the kaiser. But, then, has not the
kaiser too often been charged with
things which he has protested he was
not nor cOu not be guilty of, being a
man OF peace?
Germany, during the last four years,
has broken the record of economical
development and disconnected even the
best informed. She has become an i'm
mense workshop, where under the
blows OF heavy hammers are forged
political. intellectual. industrial and
commercial influence has been extended
beyond her frontiers.
But as great as may be the work ac-
complished, there are those who be-
lfeve that this superb and arrogant
edifice is not established solidly
enough to resist the squalls and tenn
pests which are already in the heavens.
The kaiser, although respected is nc
| longer always obeyed. and he is often
discussed harshly; the
German economical expansion
Condit;ons Of Germany runs
0' ag a inst unexpected
| obstacles; periodical financial or bank
| crises or frequent street troubles en-
| barrass her progress; budgets are in
constant deficit the taxes increase year
by year; the cost of living augments;
the bourgeoisie are quarreling amons
| themselves: a wind of criticism seems
| blowing over the country, and from
| the masses who live upon salaries and
endure privations there arises a rumor
of complaints which troubles the re-
pose of government and spreads alarm
almost everywhere and makes breach
in the optimism in which the nation
| has until now enveloped itself.
The above resume is necessarily con-
fused and fugitive. 1t is necessary to
enter into details to render it clear and
comprehensive. First, there are the
budgets of the empire. those of the
confederated states. the provinces and
the communes; second. the debt and its
augmentat' on; third. the income and
it's fluctuations; fourth, the economical.
political and social movement.
Budgets in Germany are made up Of
expenses of state scattered about In
series placed in the account incongru-
ously. and incomprehensible only to
those initiated or cogniZant of the
facts. The financial regime Of the EN-
pire and the confederated states COM
p!icates the unity of the budget
-.,e German empire forms a verita-
BILE federation of states over the desti-
MES of which the emperor, who is at the
same time King Of Prussia, presdes. II is
charged with the general interests. nota-
bly, the defense of the country, its poiiti-
cal, economical and financial relations; it
provides for all expenses, diplomatic
and military.
In the month of May. 1910. apropos to
the discussion Of the budget before the
chamber Of lords of Prussia. Herr Gwin-
ner, financier emeritus and director OF the
Deutsche bank. pronounced severe ar
raignment of the government because OF
its crude financial system. Herr Gwin-
ner said:
TT cannot be claimed even that there
is financial administration. for the gov
eminent has no idea of what constitutes
| financial principles The way in which
public loans are launched since severa.
years proves the complete absence OF in
telligence Of our administration of
the empire only Of four milliards OF
| marks, LOCO, OOO,OOO or SIG 40 per capita
when the debt reality is not more
than $2J0,0O0.O00. Nothing can pre-
vent the fall of state loans when the
government follows a false policy. Ger.
many is exhausted. 1t is an open secret
that the last loans were not covered, not
withstanding all the efforts to that end.
The gravity OIL tneSe words ooeS NOT as
found those who are initiated, and com.
ment is unnecessary. One
German should not be astounded te
be confronted by contin'
.OeAc1ts' ual and progressive deficit
in the German budget. The expenses OF
the empire have arisen successfully as
follows: s195, 900. 600 in 1878. $4,000 00t
in 1895 s549 200, 600 in 1900. $3.50. 900 OO0 IN
| 1905 $40. 500 600 in 1910. and 1871 .20O.OU
| in 1e1i. These expenses have doub ed In
seventeen years, from 1873 to 1895; tripled
| in twenty-five years, from 1878 to I9O'
ouadrupled in thirty-three years, from
Had the French budget followed
march of ascension as rapid as the Ter
man if would have reached today the
twelfth miIliard. For a fact. the French
budget is at the fourth miliiard ana
half. Nv
nenses. which figured in the German
budget Of 1895 under the grand lotai ot
Sl61, 600 900. they attained the sum VI
$780, 200, 900 in 1911. .r,os
An old saw warns that excess prinss
ruin in all things. Since two or tnree
vaars the growing trouble in the German
freasury. the repeated and accumulated
a. Us has aroused little by aittie
shirt of prudence and economy. Inc mn
neriaI government has finally perceived
hat to continue the reckless pace II mas
been going risks to comp promise tile ~" "a