The citizen. (Honesdale, Pa.) 1908-1914, 1912-12-25
BIC BORROWING
FOLLOWS PEACE
Enormous Financial TranSaC-
tiuRS When war Ends,
EXPECT Fl00O OF new LOANS

Not Only 5elli1erent States Will Have
to Put Their Finances Again on
Sound Bssis, but Other Countries
Are Also Preparing to hai~s Stu
pendous sumo.
The prospect that the war In the
Balkans would soon reach its end has
been raising misgiyings in European
money markets as to the large amount
of new government loans that will he
offered for underwriting ne soon AZ
possible after peace shall have been
declared. According to the Frankfur
ter Zeitung. there will be such a food
of new loans in a comparatively short
time as the markets have probably
never known before. Not only the
belligerent states will have to put their
finances again on a sound basis, but
other countries are also preparing to
issue great international loans.
Turkey already arranged for a part
Of its needs. but its transactions were
left incomplete pending the tsrmina
ton of the war in Tripoli and the re-
suit Of the present war. OF course the
porte will need large sums OF money
after the war to place Its military
equipment again on a tolerable basis
1t will undoubtedly be an active bidder
for any moneys awaiting Investment
in west European countries.
Then there will probably have to be
| inc ~ hn fAh
debt, the victorious Balkan states tax
ing over the payment OF the interest
on part of 1t or paying lump sum to
compensate Turkey for the loss OF its
European territory.
Balkans as Borrowers.
! Bulgaria and it's allies will also need
money in large amounts, as their finan-
cial position has been greatly weaken
ed by the war Before its outbreak
| Bulgaria was negotiating with q group
of French, English. German and Aus
trian banks for a loan Of S37 100000,
and It received an advance Of $5,0OO,-
600 upon it, and 1t has Just borrowed
SS,OOO,OOO on 5IA per cent treasury
I notes at Paris.
| The unfavorable terms attached TO
this transaction are sufficient indi-
cation of .Bulgaria's pressing need for
money. 1t will require large amounts
for its military establishment after the
war, as well as for administrative and
development purposes in its newly con
quered territory.
Similar conditions will prevail in
Servta, Greece and Montenegro. Servia
is reported to have Just borrowed ST.
100000 from a Brussels bank for three
years, evidently intending to provide
for 1t, and for subsequent requirements
through loan after the war.
Italy Wants $t4o,ooo,ooo.
Italy is also a large prospective bor
rover. 1t is authenticity reported
that it was in negotiation with the
Paris Rothschilds for $40 100000. al
the time when the Balkan war broke
out, which, Of course, caused the trans
action to be postponed. 1t rs also eX
pected that both Austria and Hungary
will raise loans soon after the war ends
but the amount OF their Joint require
mentS - not known.
1t is also well known fact thai
Spain wants to raise large amount OF
money to place its finances upon {
sound footing, and 1t is assumed tina
II will resort to q foreign loan for meet
ing part at least Of its requirements.
The sum mentioned as the minimum
of It's foreign borrowing il 100000, 600
Behind all these borrowing plans looms
the big Chinese loan Of about 100000,
600, which has not yet been accepted
by the Chinese government although
offered by the six powers group o.
bankers.
OF course most OF these prosperity,
issues will go TO the English anC
French markets. 1t IL not believed
that Germany will take any consider
able part in supplying the wants o
the countries in question.
Whatever be the attitude of German
financiers, however, 1t Il evident from
,, the foregoing. that the European mon
ey markets will have to meet large de
, mands for new capital within q rela
lively short period.
When this will begin. depends upoi
p the speed made in settling up matter
in the Balkans. If a European confer
ence is called to carry through the ter
ritorial and other readjustments, thes'
! financial operations may be consider
| ably delayed.