Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-10-31
WAR-LOAN RIDDLE:
SOLVED BY PRESS
Success of German Financing
Long Had Been Puzzle
to Allies.
u IS DELIGHTFULLY."- SIMPLE
Government Merely Supplies Its
Money for People to
Lend.
T IS DELIGHTFULLY."- SIMPLE

Especial Gable 10 The Timcs- Dispatch.l
LONDON. October 3o.-Whcn the first
news reached here OF the success of
IN" third German war loan il created
n sensation. How was II possihle
everybody asked that Germany. whose
hnancial resources were said to be OK
haUSted, was able to raise tho enormous
amount or more than 10000 600 100
marks tS30,OOo. 600 OOl"
The riddle has been solved now for
inc question has been plainly answered
In tho most authoritative manner bv
the German press Should the German
Minister OF Finance. DR.. Helferich, de-
eide to issue fourth war loan. !,
should bring in at least 10000. 900 .ooo
marks within very short time FOR tho
way IN which the money is raised ia
as deIghtfully simple as the methods
or certain American get rich-ouick"
swindlers.
Almost on the very day when tha
NaiSer ordered general mobilization
throughout Germany there came into
existence in the Vaterland a new kind
or banking and loan institution. the
so-called "Kriegs Darlchenskassen.
the object OF which was to sunn1v
patriotic Germans desiring to invest In
war loans. but lacking ready money.
with the necessary cash Two kinds
OF loans were granted smaller ones
principally to people having steady
income or regular salary, which was
taken as security for loans to be re-
paid by installments and loans on all
kinds OF securities up to three .fourths
of their face value
FIRST AND SECOND loan
BONDS AS SECURITY
The success of the third German war
loan is principally due to the fact that
the "kreEs Darlehenskassen" adj
vanced money for the investment in II
on the bonds OF the first and second
war loan as security.
Al the start subscriptions came in
very slowly. and failure appeared in
eF'taoie until advertisements appeared
ia practically every German paper to
me effect that the Kriegs Darlehen
skasscn was ready to advance 10 per
cent OF the bonds OF the two previous
loans, fact which was also made
known officially in the governments
special organ. Norddeutsche AllEemejne
Heitung The subscription then i'm
mediateiN began TO pick up, but new
difficulty presented itself because the
great majority Of subscribers to the
previous loans had not yet received
their bonds
On September s. therefore, VOLTS
fress Agency announced that the
Dar!ehenskassen would advance money
TOR the third loan OH all Temporary
receipts for money invested in the first
and second war loan. The following
| day the Darlehenskassen Offices were
hesleecd by crowds OF investors and
the koelnische Zeitung demanded that
they be kept open all day, though all
other German banks have long closed
AT noon because most OF their clerks
were Al the front.
NOT 4 SINGLE PENNY
ADDED TO RESOURCES
one single example will be sufficient
To explain what has been done through
out Germany, The city of Munich, for
instance. subscribed 100. 900. 900 narl,s
10 the first and 100000 marks to
the second war loan. Handing over tho
bonds and Il few more securities TO the
parlehenskasscn. which are state in
Sututions. it received an amount Of
e"p,o"o."r0 marks TO invest in the third
war loan. and on the new bonds It will
IN time To come he able to borrow az
least l5o,H0o,000 marks to invest in p
coming fourth war loan. In other
words, the government, which is bor
| rowing money. supplies investors with
the money which they are to lend it, 1t
receives money il has itself given awav
| mus increasing its debt without adding