The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-21
WAR FINANCE.
which Side Is Going Bankrupt First
In the Great Conflict?


To rHE EDrroR OF TIE suN-Sir: A
Few days ago you published a letter
from Mr.. Umsted. which was highly
illuminating and in my opinion a valu-
able contribution to m Of the burn
ing questions Of the day, international
finance. The subject per sc Is ex-
tremely interesting and deserves a
place in any publication. as 1t Is very
little understood, hence n discussion of
any phase Of this topic can only bene-
ft the intelligent reader.
This country has now the opportu-
nifty Of usurpinE a great deal OF the
financial power OF the Old World. but
II can only do 80 n our people are able
to correlate and coordinate the de-
mands and requirements OF foreign
countries to our W conditions and to
carry u conclusions reached by m
telllgent reasoning In a practical way.
This Is my excuse for taking up your
valuable space.
Their is not q single argument In
Mr.. Umsted's article that IL not based
upon truth. and II Is sound reasoning.
He has sensed actual conditions, ap-
parently from an unbiased standpoint.
] do not know the gentleman person
ally. hence l canno say whether he is
pro-German or the contrary. but that
has absolutely nothing to do with the
subject. His article IL a true descrip-
tior Of financial conditions at the pres-
emit time.
I knew there would soon he an an
swer. and it appeared in THE SuN of
December Is. and was written by a Mr..
X. j. O~berfohren. who is pro-German
undoubtedly, and German-hke tries 10
obscure the issue by means OF oasu-
'stry. sophistry and all other tricks Of
the argumentative kind. He starts in
with a positive statement that the
English Government had coniscated
the gold supply OF the Belgian Ma
ttonal Bank. l know that this supply
Is still intact. and undoubtedly the
other supplies he refers to are also in
tact. He calls into question the state
ment Of the British Chancellor hat the
private banks are holding $751; 900, 900
in gold. I know M particular bank
that holds $4,000, 900 in gold, and
there are a great many private banks
In London. All banks in England,
with the exception of the Bank Of
England, are called private banks. and
the use Of the word private Is a
specimen Of Mr.. Oberfohren's casuis-
try.
The silver in the Bank OF England
and the silver in the Bank OF France
Is a negligible quantity. and Is 80 small
in comparison to the gold holdings
that in the terms Of the chemist II
would he called only a trace.
The entire argument loses its force
by its misstatements. hence II Is use
less To go further INTO the matter. We
now come 10 Mr.. Oberfohren's state
ment Of the German side OF the case.
and here all is sunshine and arro-
gance. But "Papier list g%eduldlg."
Comparison means nothing, but that Is
the leading fault Of the German casu-
list. I know DR.. Helfer!ch. the presi-
dent Of the German R~eichsbark. per-
sonally. and many a talk have I had
with him on world finance. I know
how his heart IL bleeding when for
po.icy's sake he Is obliged to make
statements that he knows are not
true. Talking To a prominent German
banker a few days he said TO me:
II know We are bankrupt. but ! only
hope that the Allies will be declared
bankrupt n few weeks before We are.
then We will have the advantage
The German people are a wonderful
people to know them in their own
country and in their home surround
ings is TO love them. was educated
In Germany, and in my heart have a
love for German Kultur a. eXemp,iicd
by It's scientists, its poets and its
masses, but the Kultur ~ the Kaiser,
the Kultur of Won Tirpitz and the
Kultur OF the Goose St.p-IIeaven
forfend. NERrrAs.
New YORK. December 90