New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-18
ARTICLE VI (LAST).
Bankruptcy.

II the war came 10 an end to-day
Germany would have contracted per-
manent debt of about 100000
and a floating debt of perhaps $4,000
100000 more. Her total debt would be
$40 900 900 900 to 81, 900 900 900. As to
England, she has borrowed so far:
1881, 100000 permanent loans at home
1926, 200, 900 Exchequer bonds.
f26,OOO,00O different small expedients
sSf2,OOO,00O Treasury bills.
s25O,O0O.O0O in the United States
without collateral.
She is just now issuing S25O,OOO,OoO
more in the United States on collateral,
repayable after two years.
OF this total, s50O,O0O,OOo, or . per
cent. has been borrowed abroad; 80
per cent are floating debts; &c per cent
only have been raised by permanent
/ loans. England has parted with large
mart OF her international investments.
/ She has no doubt merely "swapped''
/ them, for she has largely invested IN
the business Of her Allies. Up TO the
first of August, 1916. she has lent them
over $4,000, 100000. She is making ad-
J vances to them at the rate Of S7.0O0,0OO
q day. In other words, she has got
rid of her first class foreign invest
ments in exchange for s3,00O,OOo,oOO
Allied bonds By the first Of January,
1917, another $1,000, 100000 will have
been added.
Germany, too, had TO part with a
large part of her foreign securities,
but, thanks to England's interference, a
coodlv share of them has been con-
served. The amount Of German prop
erty withheld in England from its
rightful owners, has been estimated at
$500, 900 900. England will have to give
back these spoils, with compounded in
terest. when peace is made, and make
good the wanton damage done. The
discussion of the reestablishment of
Belgium will give the proper stmos-
phere in which these questions can
be discussed from the highest point of
view, for the occupation OF Belgium
will provide Germany with the neces-
sary leverage TO exact compensation.
The result will be that Germany's large
foreign assets will be released at the
conclusion of ncace (a)
At that time England will have 70
fund her large floating debt before
she can think OF contracting new loans.
Germany has done that funding during
the war. II she wants to borrow money
she will have ample foreign securities
to be used as collateral.
Wars Financial Burdens.
No doubt the burdens of the war
vii! be awfully heavy. If peace were
made to-day the annuities for paying
interest on the debt would be over
$500. 900. 900 year in each country.
As the regular expenditure of Germany
in 1918 was $4,000. 100000 marks. or
1857. 100000, her expenditure would be
increased by 50 per cent. As England's
expenditure is much higher-s9l6.-
600. 900 though her population is much
smaller. the percentage OF the increase
would he smaller, but :he burden would
be heavier. The cost Of the war TO her
is getting more expensive every month.
1t has risen lately from s24.o0o,oo0 n
day to $4,000. 900. or from 1925, 1000 900
a month to :S7O.0o0,OO
Neither Germany nor England will
be broken by the war. At the close Of
the Napoeonic wars the annual debt
Of England was 32.5OO.00O pounds
sterling (sl50,OOo, O0O). She was then
n small and poor country in com
parson to what she is to-day. The
war has not destroyed the national
resources OF either country. Russia
has devastated East Prussia A good
deal Of devastation has taken place in
the German colonies. most of which
are lost temporarily. Even if they
were never returned which is not
likely-it would not affect Germany's
financial position very seriously to-
day. The colonies were not yet self
supporting financially; her colonial
trade was but / TO per cent Of her
total trade. Germany's commerce
with the neturals and with the enemy
has been interrupted for the present;
it will no doubt. suffer in future. But
the main springs Of her economic
system have not been touched. Her
merchant marine has been rejuvenatcd
and is waiting for an opportunity TO
serve the worlds trade once more
Her prestige for efficiency has been
raised all over the world. Even if she
could be beaten a few years hence
from to-day, the tale will be told az
long as the world stands how she and
her allies faced the greatest odds the
world has ever seen.
The enormous stress which has been
put on her has not been wasted. as far
es her future development is con-
corned. Her organization has been per
fected to an unexpected degree, and the
stress of the blockade has taught her
people lessons in economy as no other
ration has ever been taught. When
peace comes her people will be a.
hard working and as inventive as they
have been before. They will have