Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1914-09-03
Financial Resources More NeCes-
sary Than All Else.
Cost Of Great European Conflict Es-
tImated to Be $54,OOo,oo0 Daily
Coin and Bullion In the
National Banks.
BY HERBERT TEMPLE,
European Manager of the internatlon-
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 a 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 S54,-
100000 If Italy, Holland, Turkey and
the Balkan states get into the con-
tlict, $l0O,000,000 would be a fair esti-
mate of the daily money cost of the
huge conflagration.
The German reichstag at the outset
voted more than 000,O00,O00 for war.
The British parliament voted over
$500,000,00O at first and followed this
with another s50O,000,000 making
the total British appropriation ST.
600 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
the nations involved.
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 a 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 900; Germany, s422,5O0,O 900;
Austria Hungary, 1921 100000; Great
Britain, $2O1. 100000.
These could only become available
as war chest II their primary func-
ton as backing for paper currency
and credit were suspended. They are
of greatest value when exercising that
function. Although England's 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.
1t 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
to fall back upon their gold reserves
to pay for the munitions Of war
In such an event, even the vast ap.
preparations Of the countries would
not 60 far toward paying the $54 ,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
manys great special war chest of $780,
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 Its
own territory and that Of Its friends
and allies.