South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-03-27
WAR CAUSES HUGE
WEALTH WASTAGE
Actual Expenses Only Part
Cost of Living and Misery
an Untold Share.
News-Times Special Service:
dy Henry Clews.

understood. Accurate figures are not
available. and could not include the
destruction OF property on land and
sea, nor the loss from diverting the
energies of millions Of men from con-
structive 20 destructive efforts Ger
many's monthly war expenses are cs-
timated at about S5OO,OOO,OOO, and
war credits 70 the amount OF Si0,-
0O0. OOO. 900 had been voted up TO the
end OF 1915; since when additional
loans aggregating about $4,000. 0O0,-
600 have been announced Germany's
debt at the end OF this year viii be
about ten times what it was before
the war, leaving an annual interest
charge Of approximately $3.50, 0OO,-
600. Germany hasalso helped finance
Bulgaria. Turkey and Austria Hun
gary; the latter spending about $780,
600. 900 monthly. War is costing
Great Britain nearly S25.c0O.OOO
daily, or over $7OO,OOO.OOO mcrthly,
and credits amounting 10 SIS. COS 000.-
600 had been voted up TO the end Of
1915, since when another $4,000, 000,-
600 have been announced. Great
Britain has also aided in financing
France. Russia. Italy. Belgium. Ser
bia and Montenegro, and the chan
cellor Of the exchequer recently
stated that Great Britain will subsi-
die her allies TO the extent Of 81
600. 900. 600 during the current fl
nancial year. France borrowed
about 50. 600, 5000 during the first
year of the war. Italy is spending
nearly S1OO.0OO,O0O monthly on war.
and Russia had spent a total of about
So. Zoo, 600, 600 up 10 January 18th
But these terrific OUTLAWS are merely
part OF the penalties Of war The
cost Of living has advanced seriously
in all OF these countries. Food has
risen over 40 per cent cent in Great
Britain. over so per cent in Germany
and probably still more in other bel
ligerent countries. All the belliger-
ents are facing initiation in varying
degrees, and they are handicapped
in international trade to the extent Of
from TO 50 per cent, according TO
their relative credit, which is eventu-
ally reflected in high priced commo-
dities OF the untold human misery
no measure can be taken in the fear
ful war bill which Europe must pay
for in this and many succeeding gen.
erations.
Peace RImOTs Cause Slump.
Premature peace rumors caused a
slump in war stocks during the early
portion Of the week, but when these
rumors proved false. recovery
promptly followed. Peace is proba-
bly, i'm sight, and may come earlier
than expected, yet it is still dreary
months away. Germany continues
making al splendid fight. but grows
apparently weaker as time progress
es, while the allies gain in strength.
Undoubtedly the latter will persist in
pursuing their advantages to the linn
il, judging by the utterances Of their
national leaders and by the enormous
new contracts for ratiOns and other
supplies still in process of negotia-
ton. When peace, however does
arrive-and its coming should be
fastened by every possible effort
it will vitality affect the securities
market. The war group when it sees
the end of its feverish prosperity
must be expected 10 decline material
": while, as to it's effect upon other
shares. that remains TO be seen. It
does not yet appear that peace would
injure American stocks as a whole.
In some respects it would certainly
benefit them. For instance. the in
fiux OF American securities from
abroad would quickly cease. Ex-
change would resume more normal
conditions. British necessity for sell
ing holdings of Americans would
come TO an end and Germany has
practically parted with all her Amer
lean investments. The frightful de-
struction and diversion of capital for
war purposes would stop. and the
tendency toward dearer capital
would consequently gradually disap-
pear. The mental depression now
weighing upon the whole world
would materially decline. and new
hope with its refreshing stimulus
take its place. As capital cheapened
with diminished waste and returned
to normal rates, the effect would be
helpful TO American shares anu
bonds American capital now going
into waSteful expenditure would
once more be turned into productive
enterprises. Many a new venture has
had TO be postponed for the past year
or two because Of the insistent for
eign demands for money. our rail-
roads and our factories would have
| less difficulty in securing the funds
they now require on the other hand.
our export trade would be vitality af-
fected by peace. The exports Of mu-
uitions would cease witk the execu-
ton OF present contracts. This would
mean less traffic for our railroads
from that source Imports might re-
vive partially out IL is we'll to re-
member that europe vii be able 10
sell us little and buy only rigir neces-
stiles for some time to come after the
war. For foreign trade especially we
viii be obliged 10 seek new fields,
/ particularly for exports; and this our
financial and industrial leaders are
already fully alive 10. So much for
the principal foreign factors in this
stock market.
Natural Influences.
Domestic influences will begin to
exert their natural influences when
/ the war is over, il not before. Peace
will overcome the forces which have
+ completely dominated this stock mar