The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1914-09-03
VARS REAL S|NEWS
Financial Resources More NeceS.
sary Than All Else.
Cost Of Great European Conflict Es.
tImated to Be $4,000, 900 Daily
Coin and Bullion In the
National Banks.
BY HERBERT TEMPLE,
European Manager of the information
al News Service,

BY HERBERT TEMPLE,
European Manager of the lnternation-
al News Service.
London.-Men and guns, battleships
and aeroplanes are necessary for war,
of course, but the prime requisite Of
modern warfare is money. Financial
resources are the real "sinews of war"
and, in q long drawn out conflict,
money is more necessary even than
soldiers, arms and ammunition.
1t has been estimated by experts
that with Germany, England, France,
Russia, Austria Hungary. and servia at
war. the daily cost will aggregate $54,-
100000. If Italy, Holland, Turkey and
the Balkan states get into the con-
flict, $1O0,00O,000 would be fair esti.
mate of the daily money cost of the
huge conflagration.
The German reichstag at the outset
voted more than 100000 for war.
The British parliament voted over
$500, 100000 at first and followed this
with another $500,0O0,00O making
the total British appropriation ST.
900, 100000. The Russian war appro-
priations have topped the billion dol
lar mark, and France has not been
behind.
In a gigantic war like the one now
on, the bankers of the world are per-
haps more powerful than the rulers of
tho pntiODo iDuo1vod
The Importance of the financial fac
tor has never been more obvious than
now when the European war has
thrown the stock exchanges and
bourses of the world out Of business.
When so vital part of the financial
structure is taken away, all the usual
data that go to indicate nations f.
nancial standing become to great ex-
tent valueless, but they are still Of use
for purposes Of rough comparison.
OF the amount of hard cash that the
warning nations Of Europe have at
their command, the returns of the
state banks are the best guide avail
able. According to recent weekly re-
turns, the five great powers now at
war have the following amounts OF
coin and bullion in their central
banks: France. $94s,500, 900; Russia
$S72, 100000; Germany, $422, $500, 900;
Austria-Hungary, 1921, 100000: Great
Britain. $201, 100000.
These could only become available
as a war chest II their primary flnc.
ton as backing for paper currency
and credit were suspended. They are
Of greatest value when exercising that
function. Although Englands central
gold reserve Is the smallest Of the
five, 1t Is said in banking circles to be
the most valuable because 1t forms the
backing of an immense volume OF
credit Of international value.
It Is only on the assumption that
the great credit system of the Euro
pean nations at war should fall utter
ly to the ground, that they would have
t. fall back upon their gold reserves
to pay for the munitions Of war.
In such an event, even the vast ap
propriations of the countries would
not go far toward paying the $4,000,
900 daily that is the estimated cost
Of the big war. They are all forced
to borrow heavily and 1t is thus that
the worlds great bankers become fac
tors in the European conflagration.
Until national credits fail, credit
| rather than actual possession of gold
must be the source of the wherewith
al for military operations. Even Ger
many's great special war chest of $40,
100000 gold counts for little while
credit lasts.
In considering the comparative abil
ity Of European countries to raise
money, it must be borne in mind that
the existence Of the great war, involv
ing nearly all the powers, necessarily
limits each governments credit to III
own territory and that Of It's friends
end allies,