Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-01-28
CEKMANY's FINANCIaL rOWEK.


! lin, December z. 1915 on the sub
iect Of Germany's financial power, by
request Of Gustav @. Roeder, a rep
rescntatve Of the New York World,
who went to Germany in tho later
part Of 1915 to Investigate the con-
ditions prevailing in the Empire,
Mr. Arthur Won Gwinner, the presi-
/ dent Of the Deutsche Bank, the larg-
est German banking concern says.
Germany has raised during the
| war 5,500,000,000 marks (about
! $4,000 0,000), all in per cent
| perpetual stock France is issuing
q per cent. perpetual loan at S7H,
or including conversion priwlcdges,
at about 86% That is a remark
ably cheap price the yield to the in
yestor being about 8 u per cent
would not be surpriccd If sub
stantiaI amount should be subscribed
over and above the two billion odd
| dollars sh0rt-tcImed notes and bonds
| which have been raised so far and
which are accepted i'm payment of the
new loan in lien OF cash. This is
! practically the first French effort to
| raise money for the cost OF war.
| What had been done hitherto In that
respect was little more than make
! shifts. You viii observe that France
! is borrowing at price 12 per cent.
below the price Of the German war
I loans.
need hardly tell you that the
! Anglo-French borrowings in New
York have cost fully per cent. A
new British war loan is expected ere
soon, and will certainly be at per
cent. if not more, and will be at
( discount, ais the first and second
! British war loans are now.
London papers have been busy in
| spreading false news about Ger
many's finance, as about everything
German. One OF their fayorite ar
| guments has been that German war
loans have not been paid for IN cash,
but by borrowing on securities, mer-
chandise and even real estate. You
may find out while you arc here, that
nearly the entire S8,0O0,0O 900
have been paid for; before you can
return home or this interview can
reach New York the last instalment
, on tho last German war loan viii
/ have been paid and not q dollar will
remain unpaid for in cash.
Russia and italy are near bank
ruptcy and their interior issues for
war purposes have been failures.
Fractional Notes Issued.
AT the outbreak of the war our
English cousins issued ten and
(! twenty-shilling notes legal tender,
\ just as we have required to issue
small notes for the purpose of sup
+, plying small currency. We are want
| ing some because our fractional
coin is circulating not only at home,
but in foreign provinces occupied by
our armies, hardly smaller than en-
! tire Germany
Still there is only about half the
! amount of such legal tender notes in
! tho hands of the public in Germany
as against England The total
amount Of these fractional German
4 currency notes circulating is about
/ $3.50, 100000 and is covered three
4 times. By first class collateral with
a margin of SO to 100 per cent, by
4 responsible parties owning the col
4 lateral and lastly by the guaranty Of
! the German Treasury
Our central note issuing bank. the
Relchsbank, is holding over $780,
4 00O,O0 Of gold, exclusive OF silver
coin or currency notes. In order TO
veil that the Bank or England is
I increased it's stock Or the yellow
metal even during the war by much
lesser amounts than tho Reichsbank
the London press are fond OF limiting
that we have been drawing on the
gold reserves OF our allies
No, Germany has been a 2iycr Of
gold 10 her allies, although the mark
cts OF the world were closed to us
and although we could not draw on
Indian reserves nor Belgian vaults.
Indeed since Juiy, 1914, the icichs-
bank has given away certainly %150,-
100000 OF gold, possibly even more.
Money Is cheaper in Berlin than
in London
Stocks and shares hero have fallen
70 q very much smaller extent than
securities in England or in France,
Banks deposits are higher than
ever before; savings banks deposits
have increased even during the war,
The shares Of the Deutschc Bank be-
fore tic war were quoted ut 240 to
300 per cent; you may find "A buyer
for any amount you wish TO sell at
@30 per cent. now. quite q number
Of tho leading shares are being dealt
in at higher prices than they were
before the war in France the best
shares Of lcadine concerns have fall
len to about one-half Of previous
quotations, British securities by
about one-third.
We have no moratorium, not even
for stock exchange settlements, the
last balance OF which was settled
while yOu were in Berlin.
Millions Given TO Needy.
Our antagonists have concocted
the most inhumane and uncivilized
design Of starving sixty-e millions
Of people old and young, women and
children, Just for the sake Of "wip7
ing out militarism." Please remem-
Der that before the war England was
spending for her navy and army at
the rate of 81 and SS per capita,
Germany at the rate OF $5 to So.
Perhaps you may know, anyhow
your readers may care to know, that
Germany has been spending for
social work told age pensions, in
!surancec against sickness and acci-
dents) fully one billion marks yearly,
10 4. lt. u.