Daily capital journal. (Salem, Oregon) 1903-1919, 1916-01-04
By j. w. t. Mason.
Written for the United Press.

written lOr lHe OHlleu ITesS')
New York, Jan. AT the close OF
1915 the war has cost more than twen
ty.six billion dollars, exceeding by five
hundpred million the total nationa
debts of the six principal belligerent
powers when the conflict began. Witt
the exception of about $500,000,00(
raised in the United Kingdom by taxa
ton, practically all the expenses of the
war have been met by borrowed money
The end of 1915 therefore, finds thu
fighting nations saddled with double
the debt they had accumulated in al
the centuries preceding the outbreak OF
the war.
In the early days of the war tn,
most liberal estimate of its cost, wa'
fifty million dollars per day. The act
ual expense now, exclusive of economic
ana property losses, eighty-five mil
lion per day. OF this amount the
Quadruple Entente is paying two-third'
and the Teutonic allies one.third. II
the war continues through the winter
the cost will probably rise to hun
dred million per day. The interest fol
war loans which the war has already
imposed on Europe's future genera
tions is about billion, two hundred
million per year. Every week the wal
lasts fixes an additional annual in
terest burden on the belligerents Of
twenty-five million.
Tax Burden Colossal.
Colossal taxation will have to be I'M
posed on the soldiers when they re
turn home after peace is declared. Tht
belligerents will be bowed beneath the
burdens of the war debts. The Ger
mans for a time this year believed il
might be possible for them to evad,
their cost of the conflict by compelling
the Quadruple Entente powers to pay
full indemnity. DIR. Helfferich, tn,
German minister of finance, made thi
statement in the Reichtag last August
But as the years fighting continued
with constantly increasing expendi
lures, the German government changed
its mind about tae possibility of any
belligerent being able to escape from
the financial net. DR.. Helffericl
therefore announced fortnight age
that although Germany might collec
an indemnity, yet the war would i'm
pose "a colossal burden of new tax
es on the Germans.
During the year, various Britisl
statesmen uttered warnings concerning
the financial outlook. And the posi-
bility OF bankruptcy oyertaking Europe
has several times been mentioned il
the house Of lords. All the belligcr
ent governments have become uneasy
about the monetary outlook, but tao
system Of running the war on borrowed
money has prevented the people them
selves from feeling the financial pinch
except in Great Britain. The British
government is now raising about five
hundred million per year for war costs
by direct taxation; but no o'ner natior
has as yet seriously increased its peace
taxes. The British tax, large as IL is
does 70 more than meet the interest OF
tne government s war borrowings
France Is Preparing,
The war has compelled the rapid ex
penditure Of such Unprecedented sum-
of money that it's difficult to bcliev,
the warning governments will continu,
the strain for another year unless ON,
side or the other sees the possibility
of a complete victory. No decisiv,
success for anybody is now in sight
Even If either group of belligerents ha,
the power to force the otIer into bank
ruptcy IL is not probable that power
win be applied. The injury which
would be done to the most robust Of
the warning nations would not justify
the infliction Of condition Of insolv
ency upon the enemy.
France is leading the other nations
in taking preliminary steps to recover
from the financial blight Of the war
Tne northern area of France now in
the enemy's possession is one Of Eu
ropes most important manufacturing
ccnters. The factories will have to be
rebuilt and new machinery must be in
stalled, after peace is declared A
French commission is now in the Uni
ted States studying American labor
saving devices and American method,
of production. Factory output in th,
United States is between and Z
shines as much per man as II is in Eu
rope. IL, after the war; France ear
adapt herself TO American methods
the French factories will at least
double their productivity and Franc,
will be able TO care for ner war debt,
and grow ricner AZ the same time. II
Europe at large is to make q speedy