The sun., 1916-12-14
BERLIN CONFIDENT
OF PAYING WAR BILL
Imperial Chancellor Replies to
Charge Of Secrecy Made
In England.
FINANCES "OPEN BOOK"
Count Won Rocdcrn Says Long
Term Loans Will Provide
Needed Funds.

BERLIN fby wireless), Dec. i3.-"Ger-
niany's war finances are an open book
from which an attentive reader can learn
the height Of the wal expenditures, the
maximum limit Of the floating debt and
details regarding war OUTLAWS Of the
federal states and municipalities neccs-
sary for forming a judgment as to the
~soundness OF Germany's financial posi-
tion."
This is the reply to r. McKinnon Wood.
the British Financial Secretary to the
Treasury. Of Count Won Roedern, Secre-
tary Of the Imperial Treasury. who In an
Interview to-day discussed criticisms re-
Gently made by the British Financial Sec
rotary that Germany was keeping secret
essential factors Of her financial situa-
ton and showed how the figures are con-
tanned In the ccounts published by Ger
, many.
Owing to the war labor Law and the
extension Of the field OF operations In
the Balkans. said Count Won Roedern.
Germany's war expenditures. which had
averaged 2.lS7. O00. 900 mark S546.750.-
000) monthly. had somewhat increased.
but he vas convinced that the necessary
funds could be obtained In the future. as
In the past. upon lonS term loans. and
he had no present intention Of departing
from this standard German policy Of
funding the war expenditures and pro.
viding interest charges by taxation.
Tax On war ProAts.
The projected application OF the pro-
ceeds Of the tax on wal profits. which
In unofficial circles is estimated at 3.000,-
000. 900 marks t37b0. 900 .000). to the
reduction OF the war debt Is only In
form a departure from this principle.
the tax mentioned being a non-recurrent
levy OF an extraordinary character IN
not a regular revenue.
Count Won Roedern. like the business
men with whom the correspondent has
talked. secuted the possibility Of Ger
many embarking after the wal OF a
policy OF dumping" pointing to the alb
sence OF accumulatlons OF manufactured
goods for such a purpose and the ex-
pected high cost OF raw materials ut the
conclusion Of the war AZ preventive fac
tors, but declared that the restoration Of
the normal exchange rate Of the mark
would ave been assisted by the re-
striction OF certain imports. partly owing
to high prices and the simpler scale Of
living introduced during the war and
partly because Germany. under pressure
Of necessity. had learned to use home
substitutes for various a materials.
or. az In the case Of nitrate fertiliser. to
supplant. imported articles with home
products manufactured at considerably
lower cost.
Productive Forces Of Germany.
That the German productive forces
and German capital power are able to
create and bear the necessary outlay for
interest service on national war loans mo-
body familiar with German capacity for
achievement can for "A momen doubt.
We can however. point to u considerable
achievement already in taxation during
the war. Besides the new permanent
imperial taxes we hav adopted a tax on
war profits. the results of which are yet
to be seen.
1T has been intimated by the British
Financial Secretary that your loans are
largely paper remarked the correspond
ent.
What Mr.. Wood says about the char
acter OF the German war loans" replied
Count Won Roedern. "is incomprehensible
coming from the mouth OF an expert.
How can any one conceive that wa
oans can arise and continue to arise
from newly emitted paper money. when
there are only 1000, 900. 900 marks CSl.-
$50. 900, 000) In bank notes against A..
600, 900, 900 marks tl1.750.00 .000) in
loans: The latter represent national
wealth placed at the disposal OF the
empire nothing else.
AS to the maiptenance Of gold pay.
ments in England. you are probably
familiar with the article in the London
Stattsf, intimatins hat a suspension of
specie payments may be necessary next
spring. which also. I believe. attracted
attention in the United States"
Depreciation Of yfarh.
With respect to a reference 10 the un-
favorable rate Of German exchange,
Coun Won Roedern said:
THE depreciation OF the German mark
abroad Is certainly regrettable, but II
Is also unavoidable and Is a passing
phenomenon. II results simply from the
fact that we are excluded from the trade
OF the world and from opportunities to
export. while We continue to have a
certain. II very limited. import. This
situation will change with the conclusion
Of peace.
Just in this fact that We are forced
to depend upon ourselves economically
and financially lies our strength. We
are able to regard the depreciation OF
exchange with far greater %equanimity
than England. which Ia running steadily
deeper into debt abroad. Exchange rates
have quite a different Importance for
England and tho afforta ~ Rriti.h ANA,