El Paso herald. (El Paso, Tex.) 1901-1931, 1915-10-30
GERMAN SCHEME
RAISES LOAN BY
LENDING MONEY
Explanation of Big German
War Loans is Given in
the Berlin Press.
MONEY ADVANCED
TO BOND BUYERS
BY PHILLIP


r ONDON, Eng. Oct. S0-When the
first news reached here of the
- success of the third German war
loan it created a sensation How was
II possible. everybody asked. tha Ger
many. whose financial were
said to be exhausted. was able TO raise
the enormous amount Of more than L
billion marks. $3.50 600. O0o. 000)e
The riddle has been solved now for
the question has been plainly answered
in the most authoritative manner by
the German press. Should the Ger
man minister Of finance. Dr. Helferich.
decide TO issue a fourth war loan il
should bring in at least twenty billion
marks within a very short time. FOR
the way in which the money is raised
is as delightfully."- simple as the meth
DDS of certain American get rich
quick swindlers-
New Banking scheme Aids.
Almos on the very day when the
kaiser ordered a general mobilization
throughout Germany there came into
existence in the Naterland a new kind
OF banking and loan institutions. the
sO-called "Kriegs Darlehans6assen,
the object Of which was TO supply pa
triotic 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 a steady
income or a regular salary. which
was taken as security for loan to be
repaid by instruments. and loans on
all kinds of securities up TO three
fourths of their face value
The success Of the third German war
loan is principally due to the fact that
the -Kriegs Darlehenskassen al
vanced money for the investment m
st on the bonds Of the first and second
war loan as security
Failure Feared at First.
At the start subscriptions came in
very slowly and failure appeared in
evitabIe until advertisements appeared
in practically every German 10
the effect that the Kriegs Darlehens-
kassen was ready TO advance IS per
cent on the bonds Of the two previous
loans, a fact which was also made
known officially I'm the governments
special an. -~Norddeutsche Ange-
meme 4 The subscription then
imme6ir began TO pick up, but a
new dill. ty presented itself pc
cause the great majority Of suoscrlo-
ers to the previous loans had not yei
received their bonds
on Sept s, therefore, Woltfs press
neencv announces hat h Darlenen-
skassen would advance money TOT
the third loan on all temporary re-
ceipts for money invested in the first
and second war loan The following
MAaM Tx N4A ALAA@A@H1@@--
besieged by crowds OF investors and
the .Koelnische Zeitung' demanded
tina they be kept open all day, thousn
an other German banks have long
closed at noon because most Of their
clerks being at the front
Munich Gives Example
One single example will be sufficient
to explain what has been done through
out Germany. The city of l.unich, for
fnstance. subscribed 100 ml%2n marks
10 the first and $50 million marks TO
the second war loan Handlng-oVer the
bonds and a few more securities 70
the Darlehenskassen, which are state
institutions. it received an amount OF
200 millions to invest in the third war
loan and on the new bonds 1t viii IN
time to come be able to borrow at least
$50 million marks to invest in a com
ing fourth war loan In other words.
the government. which is borrowing
money. supplies investors with the mon
ev which they are TO lend II 1t re-
reives money il has itself given away,
thus increasing its debt without ADDING
a single penny to its