The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-13
Gcrmany's Ability to Finance the
War.

How will Germany carry OF n long war
against the two greatest financial Pow
ers in the world. these two having a.
an ally. moreover. third nation tina
can put In the field more armed soldiers
than any other?
In n recent speech the British Chan
ccllor of the EXchequer declared in sub.
stance that he confidently expected Ger
many and Austria To fail from their in
ability 10 provide the last S100.OOO,OO0
of cash" But Germany Is carrying Oh
the struggle by the use of financial ex-
pcdicnts different from any that have
ever been considered practicable under
similar circumstances.
| What these eXpcdicnts arr is do.
tailed in n very interesting article in
the December number of the Atlantic
Monthly. written by ROLAND &. USHER.
the well known author of "Pan-Gcr-
manism." Professor USHER declares
| that the German statesmen are proceed
ing on the principle that money. that
is cash or specie money, is essential or
valuable for war purposes only in 50
far as it enables them TO put an army
! into the field and sustain IL there while
| it is winning the campaign. This i'm.
plies naturally that the German peo-
pie who stay at home shall he fed and
taken care of, and also shall BE- kept
employed and contented. If these things
can be accomplished the German theory
| is that II matters little whether the
quantity of real money, actual money,
! in the country is large or small.
Real money. 50 called. serves only the
. purpose of an exchange Of value. II
! matters can be so arranged that an ex.
change of value can take place without
| the use Of money. money is unneces-
sary In the first place, therefore. II the
Government has been able 10 carry the
forces of paternalism and Capitalization
to such breadth and accuracy that II
knows every detail concerning the per
| sonal and private affairs of its citizens,
Just where all the resources of the couu-
/ try are loca ted in every particular and
ust what II Is necessary to provide from
outside In case Of war, then long in ad.
vance of the outbreak of war it was
enabled to make preparations for the
struggle Of a kind Infinitely more mi
mute and more formidable than ever
has been made in the world before.
The true financing Of Pan-Germanism
for the present conflict has thus, ac-
cordlng to Professor USHER, included,
to begin with. such an extraordinary
( na,n Al nf
private and national industry that this
war cannot involve such dislocation
OF industry as has in all other cases
been calamltous, II not disastrous, to
| the countries In which 1t occurred.
The system of CONSUMPTION used in
Germany has been enforced In such
manner that n sufficient number of men
has been still left 10 work in factories,
counting houses and similar places. so
that the business of the country can
still be carried on.
The second step has easily been taken,
and that is a complete regulation Of
commodity prices. This latter task has
been not so difficult as 1t seems, hi.
cause price Is merely the exchange
value of a commodity expressed in
terms Of money. Unless there Is seri.
Gus deficiency in supply or an unusual
increase in demand, prices ought to re-
main the same. With the elements of
supply and demand looked after. with
speculation controlled and with the
German people feeling an ineXhaustble
confidence in the power of their Gov
eminent and the success of Its arms,
the need Of money, that is currency or
specie as an exchange medium in do
nestle trade, Is inconsderable, because
any token guaranteed by the Govern.
ment can take it's place
This is the theory, and IL Is a very
pretty one. Also, it must be confessed.
it has worked very well up to date. jusr
rs The Governments great coffee valori-
Antion scheme in Brazil set at naugllt
The operation OF the law of supply and
demand there for a couple Of years.