The sun., 1916-09-10

from August 1. 1914. to June 80. 1915,
are estimated to have been AZ. 900, O0O,-
900 francs. and since then expenses
rave not ceased to increase. For the
first half Of 1916 they will be 81, 000,-
600, 900 francs. II the wal lasts the
whole year out they will We doubled
plus 5000, 00O, 600. Without fear Of ex-
a%ggeratlon 1t may be said that they
will aggregate so, 200, 900 900 francs.
ITO meet this expenditure we have
had above all to resort to loans. out
Of the a. 800. 0OO. 900 collected from
August 1. 1914, to February 90. 1916,
only $500, 900, 900 had been produced
by taxation. All the remainder camo
from loans Of one kind or another.
At present It IS estimated that with
the emission of Treasury bonds. tho
100000 of the = per cent. loan
still to be paid in, the advances Of the
bank and the collection of taxes
France will not need to resort to u
consolidated loan until the autumn
Furthermore. Great Britain has not
been able to apply Gladstone's formula.
Make the taxes. and not loans. pay
for war expenditures Although Nc
Kenna hopes that for the fiscal year
l916-I7 the receipts will he f5Oc, O0O.-
900, the greater part Of the cX-
penditure is covered 10y loans. 1iut
none the less Great Britain has proved
her financial superiority ~ all the
other States.
Italy resorted to taxes for 315.-
600, 900 francs. Without any difficulty
she procured 5.000. 900. 900 francs by
means Of interior loans.
"The situation Of tho allied States,
therefore. is very much superior to
that Of TIE Central Empires. TIL.
finances Of Austria-IIungary were in
a deplorable state before the war be-
gan. With them that is a habit. They
are defined as "A charming people who
every year find means Of spending
more than they receive and with
their Government it is the Same.
AS to tho German rAnpire Nj.
lIelfferich was unable To hide the
gravity Of the financial situation. IL
1913 the public debt was 100000
marks, in 1916 it is 5000. 900
marks.
Mr.. IIelnerich has established {,
comparison between the expenditure
of the Allies and that Of Germany and
her supporters, estimating tina
France, Great Britain, Russia and
Italy spent between August !. 1914.
and March 80. 1916. 100 To- lO5 billion
marks. while Germany and her allies
were supposed To- have spent in IN"
same time only 80 To- - billions ~
marks.
'Admitting IL" truth Of these n..
uros. do they not prove tie fact tina,
Germany. Austria-Iiuugary and Tur.
key cannot possibly comhi, the iinnn.
c!al resources Of ia" .Alll,-'
The Allies VIII fight until they
have expended their last ccuiimc.
penny and lire. Indeed they always
can find means with which To- continue
the war, while Germany Ions ago, WIS
reduced 10 "A paper rr-Imo
"Enoush attention has mot lo,n
pad to In" institution u Germany
Of the Darlchcnskass"n. ur loan bu-
rcan, which WAS established lay the
law Of August i. lali. Th.- lends
money on nuu-p"rl~hdhi" security.
such as furniture. Stura goods. Ar. It's
notes are received 10y the Ericn~hinL
at their nominal value. like .mprr
securities. In II" balance sh, { f jl.
lieichsbank they are incorporated with
the latter.
THE l:"ichshauE can ISSUE not IS
representing three time TIE" uriunl
value of these bari, ItuSk ~~,u,chcine
but these NEUTRALITY-SUSPICIOUS. ar,
not legal tender between individuals.
That Is "u" simrl" Of what IT, l,Iu-
done III GERMANY.
AT IN" end Of ia" war Germany
and Austrii-iiuuGdry VIII Zoe So ,..
haustcd that It viii lee difficult to obtain
from them the payment # a wa I..
dcmnity, IlIus night nc Adopted. for
example, bonds might hn i.-rIut
On IN" State railways l:u, The profits
expected from IA" rru~~itu railway,
in 1871, wcr" SO. uuo ouo marks.
those of SaNouN 80 oou, oOu marNs,
those Of Bavaria 3,ooU. 600 marks.
"Thcrefor" one could mot g%uIraut,"
moro than ten l.l!"u francs in bonds