South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-06-18
Of DEBT
FACES COUNTRIES
American FinanCierS Watch
with interest the PiIing Up of
Debts by Warning Powers
S35,000,000,000 Is Total.

WASHINGTON. June 1S.-Finan-
ciers OF the United States are mani
Testing keen ssterest i'm the money
problem of the European nations
while the greatest military struggle
history afforus Is proceeding.
Money, and particularly money on
gold basis. constitutes It's siHeWs.
Even ia medieval times the f"bber
barOns. princes and lighting bishops
stored up gold and rich jewels in an
ticlpatiOn OF troubles with their neigh
bors and In their raids they never
omitted taking whatever portable
wealth they could from their foes
The big problem facing the bellig
erents today is how 10 get the money
with which 10 carry on the war.
When hostilities began last August.
England. Austria. Germany, France,
Russia. Belgium and Servia had
total debt of Approximately $4,000
600, 900. All Of these nations have
since August been compelled TO in
crease this huge burden and the total
6ebt IS now estimated at approx
imately S35.OO0.OOO, 900. There is not
that much gold I'm the world there
fore, Europe 10 considerable eN-
tent. already is on q paper basis
The day is drawing nigh. according
20 financial experts. when European
nations must resort TO extraordinary
measures 20 refund this Indebtedness.
Perfects Financial Plan.
Max May. celebrated fnancier
and economist of Brussels, is report
ed 10 have perfected a financing plan
20 meet the needs OF the allies. This
plan has not been generally announ-
ced and there is considerable sPccu-
lation as 10 what it provides
The most novel war financing plan
ever put into operation in the opin-
ion Of experts is that perfected by Jay
Cooke, the financier of the American
Civil ar He took over a heavy gov
eminent bond issue and then pro-
ceeded To insert advertisements in
practically every newspaper in the
northern states, ddilies, weekies and
monthles, Offering the obligations for
sale. These advertisements made an
appeal 10 the patriotism of the people,
telling them that they could save the
union 10y buying government bonds.
Special statesmen following the north
ern armies sold bonds TO the soldiers
while the small shOpkeepers, school
teachers, the widows and orphans un-
earthed their hidden savings and pur-
chased the bonds OF the United States
government.
Since then many clever bond sell
ing ventures have been tried but it
is stated there never has been "a pop
ular subscription for q bond issue as
that which followed Cooks advertise
ments.
When Germany levied the billion
franc indemnity on France after the
Franco Prussian war the Deasantry
rallied to the support of the govern
ment. nearly every citizen contrib
uting literally from his small savings
with the result that the debt was paid
In a phenomenally short time France
still has a national debt of $166 per
capita. however.
The national debt of England and
Russia are extremely heavy but both
countries depend largely on their ire
mendOus resources. Any financial
plan TO be successful will have to be
founded on the soundest bases de
clare American students. because OF
the present obligations of the Euro
pean nations