Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-11-05
PuBI1sHED$D AnY
3GERMANY'S
FINANCES

FINANCES
The Norfolk virginian-Pilot IN
answer to inquiries concerning the
methods used in Germany in flnanc-
ing the present war says:
In outline the German system Is an
amortization of that resorted TO oy
tba limited States in the early stages
of tho War of Secession. the issuance
If naner currency, receivable for GER
tai5 dues and taxes to the govern
went vested with the quality OF ie-
Gal tender, but carrying no denniee
nromise of redemption at fixed date.
The difference is that the German
issue is unlimited in quantity by Jaw
or decree, is the only medium Oh
exchange allowed to be used IN 90
mestic transactions between SUBJECTS
Of the Empire, is accepted by the gov
eminent without discount in settie
ment of all dues and taxes and 1o1-
ali subscriptions to public loans.
Such was the financial policy, induced
by necessity, of the Confederate
States and by the Continental Con-
rress in the war for American lnde-
pendence, with like rcoul. OF I'M
mediate depreciation and ultimate re-
nudiation. though the Confederate
ca,seifailed while that of the Fede-
rated Colonies triumphed.
The German policy simply consists
in passing tokens of indebtedness
from government to people and PEG
pie to government by an endless cham
which conveys backward and for
ward an ever multiplying frightage
of "scraps of paper" or which are
printed mere acknowledg elacnt that
as between Germany and Germans
these counters are to he considered
as money. The government hancs
them out to the manufacturers OF
guns and munitions, to the farmers
their J, ..-fosttsEqto the miller Tor
nig y3p1!, aud thai sae manufacturer
far,,arES ;sd plilsrsSpass them back
to ne goF gas MS subscriptions
Tra,. srI.r ;a.4iSs jiiaa ino,dinate con-
s4s,sintiae 20 theae supplies calls for
aew uarst1eaiS n Greater quantities.
.srd tiiesa &c y,$iia for with another
b4ee fatail -. Etoa@GtS Of the print
ing. presses, and then again the per-
petually swelling stream flows back
ward to it's source. another forced loan
reabsorbs into the public Golfers the
new trebled or quadrupled evidence
that Germany and the Germans, onc
and indivisible. have mortgaged &c
each other their common future &c
the tune of so many more billions Of
l. o. US. which can only be paid
by one party to the transaction by i'm
poverishing the other, and can only De
: :disavowed or discounted from face
value in final settlement by con-
fiscating the labor and material which
have formed the basis Of ali those
vast transfers to and fro between
principal and agent. For beside the
fact that not dollar passes in an.
of them is the further fact that notT-
ing passes which, is representative
of a dollar except the material the
government takes from the people and
consumes beyond the possibility o.
restoration. Outside Of Germany tho
notes which are the only circulating
medium within Germany have no sta
tus, and at home they are curreE.
only by requirement of law, neither
the trading public nor the banks be-
ing permitted to deal in any other
form of money.
The German policy will work for q
time; but unless all human experience
is at fault, the fiscal bubble it IS
blowing will arrive at the bursting
point long before the purpos" it was
designed to further has been achie-
we'd. So long as the nation is sufficient
unto itself for the means of conduct
ing such stupendous enterprises as
Germany is engaged in the fatal dc
fects of bottomless and limitless cur
rency will not appear on the surface.
But the moment that Germany finds
need to reach beyond her own in
tcrnal resources and those OF her
neighhorig allies to make good def
cts in essentials for maintaining her
armies-and that moment must come
should the war be protracted for an
other year--her insubstantial tiGan-
cial structure will crum5ie as did that
Of John Law in France during the
reign of the Regency. And should the
fortunes os tas+ic t::rn against her
and the splendid ofFcnse which has
carried her flag into the territories
of all her Continental enemies be re-
versed. the collapse of her financial
makeshift will be as sudden and COM
plete as was that &C the Gnnfederacy
after Vicksburg fc!! and Gettysburg
was lost? =
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