New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-27

Of $10O.000.000 Of which the Canadian
government has offered TO put one-half
at our disposal for meeting munitions
purchases? Is this another sign Of the
collapse of the totterinc British En-
pire?
Bids for L. s. Money.
"Germany's one public attempt 10
borrow abroad $l0,00O.000 loan IN
the United States in April, l9l5-was
not a very encouraging performance.
But If DR.. Helfferich really objects to
borrowing in America. how comes il
that all sorts of advertisements have
appeared prominently in American
newspapers Offering Germany's internal
loans for subscription in the United
States at yields which become more and
more specifically attractive as the
mark exchange goes down, yet fail 20
attract because of he risk that eX-
change may never rise again, and Of
the intelligent doubt Of Americans IS
70 where Germany J. 20 find cash 70
pay INTEREST,"
As 10 Dr. Helferich's comparison be-
tween the course of government securi-
ties IN England and Germany, Mr Mon
fsFi said:
Or. Helfrerich told how the first Ger
man war loan was placed ut 81 z, the
second AZ 9Sl9 and the third at 81. 4
stage manager is naturally proud of
his stage management. ! dare say that
DR.. Helherich can arrange if he likes
that the next German war loan shall be
brought out AZ 1914, leaving room for
fifth at par. But it il clearly little
too good 20 be true. We are asked TO
l =
can the raising Of 100000 100000 in war
loans positively improve the public
credit, even If you forget the convent
emily remarkable fact tina. not q ghost
Of provision has been made for meet
ing future interest charges. How can
finance be sound or lead to good results
if no taXations are imposed when large
loans are being raised?
Market Is Controlled.
THE explanation of these loans is
partly. Of course, that there is no sort
Of freedom about the market for war
loans in Germany. The bourses are en-
tirely under government control. and
in fact. il not in form, there are mini
mum prices fixed below which no one is
allowed or, indeed, dare to attempt 10
sell war loan, however much he may
want to.
Quotations are nominal and exist
for rhetorical purposes only. Besides.
il you food the country with manu-
featured paper credit e is easy to
create a surplus OF deprecated marks
nominally available for Investment.
"The operation of this latter factor
is we'll illustrated in the quotations
Of Germany's pre-war debt. Dr. Iclf-
ferich boasts that this has fallen only
seven points since the war. This may
be true in Berlin. but il is sufficient
commentary on this TO mention that in
New York the price OF this German
loan has fallen % points, fact which
DR.. Hefferich naturally ignored in his
eagerness TO make debating points
and 70 avoid discussing realities.
Victory for Britain.
ain these comparisons DR.. Helferich
is on weak ground, driven there by
desperation. The British money
power OF which Dr.. Helferich
speaks has, like the British naval
power, done more than all that the
prophets expected Of IT, And Dr.. Hclf-
ferich knows il. But there are some
other respects in which DR.. Helforich
is on stronger ground, and we should
be following his unfortunate example
IL we were 10 ignore them. Germany
has raised great sums from small in
vestors many of whom. by the way,
appear TO have more war stock and
less money to spend on the necessaries
Of life than they care about.
Some Of our papers have reported
DR.. Helferich laughing at our great
war loan as having only yielded a few
hundred millions But this is due,
think, to an error in reporting his
speech. lie was speaking Of our
vouchers and small bonds having
brought in only "a few hundred million
marks The actual figures are about
S200,000.000 and would be more cor
rectly stated at nearly 1000. 900
marks, or more still II the deprecated
value OF the mark is duly allowed for
at must be remembered that we
have taxed our people and taxed heav-
ily, while Germany has not dared to
do the same. Our people are paying
these taxes cheerfully. but are. in con-
trast with our enemies, very prosper
Gus, and agree therefore that our ma
chinery for reaching the small investor
is capable of improvement. and the
committee OF which ! am chairman is
at the present moment busy investigat-
ing the possibilities Of this still IN
tapped source OF wealth.
Dangerous Method.
"The German method OF making adj
vances 10 investors in war loans is full
OF danger and open TO the greatest
abuse. Or. Helferich states that in
Germany Il has not been abused. In
Austria il has b, n abused and on
their latest loan IL is possible 10 make
10 per cent on the amount which 1t is
necessary 20 pay up in cash. Austria's
financial ruin is already completed.
But whatever DR.. HelTrrich may be
driven TO In the course Of time. ] am
willing TO accept his statements that
hitherto the system has not been
abused, that only n moderate amount
Of war loans has been raised by such
methods and that he ha, been highly
successful in modifying Germnny's
financial resources.
"But let me add that il is precisely
this success in the past which II en-
barrhssing Dr. Helferich now and will
cmbArrass him still more In the future. .
Even before the war began Germany's
nod haap afraineb ly her