The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1915-12-02

eIaStic credits on collateral.
oank began an active reorganization o
cial first aid" First in Hamburg. an
Observation-Disclosures twar credit banl
OF city councils, chambers OF COMM
create personal credit for the middlemt
Other newly created organizations
as a credit basis. The "Genossensch
care Of the credit needs of the working
iZations tie credit crisis was quickly d
Business Bows to Army.
The industries We're hard hit through
the outbreak of the war. Suspension
Of many industrial enterprises seemed
inevitable. Germany was cut off from
oversee by the British fleet.
England considered it an easy matter
to s~ubjugate the German empire by
making 1t Impossible for Germany to
import army supplies. This attempt
may have had the desired effect on
other nations. But in the case of Ger
many 1t failed, hanks to the unsus-
pected capacity of German industry.
Within a short time practically the
whole German industry placed itself
al the dlspoSaI of the arny authorities.
with astonishing adaptability the va
rlous industries concentrated their en-
ergies on the manufacture of war ma
terlal. The highly developed chemical
industry found ways and means to
produce raw materials which previ-
ously had to be imported or to create
substitutes for them. Within a short
time 1t was possible to manufacture all
war materials and the army supplies
at home.
This great industrial development
had, aside from its decisive military
significance, far reaching economical
n financial effects. The most i'm
portant OF these was in the field of
international money exchange. Raw
materials, guns, munitions and sup
pnes We're made at home, and tn. large
needed 70 .rnUor cr,ca DrJors
were kept in Germany.
Army Is Chief Employer.
The increased demand for labor for
the manufacture of munitions was
more than sufficient to equaIize the
over supply in the labor market caused
by the suspension OF industries. The
noliltary authorities became the prin-
cipai employers. The extensive de-
mand of the army provided sufficient
employment for nearly all branches of
industry.
soon there was no lack of employ
ment. The German labor market after
the hrst month of the war was more
favorable than it had been during nor
maj years In peace times. And. what
Is more. 1T remained so. A lack of
Workmen made itself felt. Wages
scared and women volunteered to take
the place of men.
q stronger economic condition was
e. Soinot4 uSICe. 1lOW STr0fp-
~ this movement developed is seen in
the facts that the freight receipts of
the railroads have steadily increased
that the great Prussian state rail-
road system recorded in June, 1915. the
largest receipts of any June in its his
tory.
But the filling of army orders also
resulted in a change Of the entire cred
Vt system of the empire. This was
prlnclpally due to the fact that the
government invariably paid for goods
In cash Immediately on their delivery,
thus making it hardly necessary for
Saanufacturers-great or srnalI-to
Sake use of their credit privileges. On
/.e contrary, they received large
of ready cash, which was
turned into the large money reservoirs
the banks Al savings institutions.
The money market was
WITH cash at favorable terms This
condition insured easy terms for pri-
vate credit and every trace of a panic
disappeared, The credit institutions
which had been created during the
first critical days al the beginning of
the war Were utilized only moderately.
Even the Observation-Disclosures were
not much used.
Loans Were All popular.
With this favorable development in
economic and financial conditions, the
success of the war cams was insured.
The first loan in September. 1914,
brought a total subscription Of $780,
1915, 100000. 900 marks, and the
third, in September, 1915, 1900, 000.-
600 marks. The grand total of these
three war oan is 25,6 63 200, 900 marks.
The price Of the first war loan was
s71a, Of the second 9S1a, and OF the
third 80 per cent, despite the fact that
the interest rate remained at 5 per
cent.
The numIrsr of subscribers, too, be-
came larger with each issue. To the
srs, to the SECOND 100000 ana to the
third 100000. The great number Of
small subscriptions indicated that the
lean was popular in the fullest sense
of the word. 1t is noteworthy that the
subscriptions were quickly paid in in
the majority Of cases. This holds es-
pecially true OF the last war loan. The
Acords snow that on October Il, 10
iays. before the date fixed as the last
day for the first payment, $500, 900, 900
marks had been paid in.
This brilliant success Is principally
due to the favorable development of
.rtnanyss economic and financial CON
d1tlon. And that this development was
caused largely by the efforts OF Eng
2 to throttle Gerrnany's economic
life Is az peculiar irony. England ex-
perieneed the same sensation as Ba-
laa1l, in whose mouth the desired
eurse changed inio a blessing.
{ is true. Of course. that economic
ev4aditiors Were not the only cause OF
the success or the war loans. Patriot
ism, tho will .gness to bring sacrifices
ttnd. above All. the determination of the
lierInan Ncs.rle to bring the war to i
successful Termination played a big
role IN the achievements Of these re-
tults.
When DR.. Helfferich, the secretary
the treasury, a in his speech to
ne R~eichstag. on August 20, To-day
y available money belongs TO the
Nfherland," he only expressed what
rygGerman had long felt. IN a we'll
News" OF August 26, this expires
sion was Interpreted to mean that the
government had confiscated ali mon
? TO make III 1.-THE raj loan, and that