The sun., 1917-08-26
Half of Nations Wealth
Spent, Jnnkcrs Strive
for Indemnities.
MICHAELIS IN TRAP
Desperate Situation Shown
in News That Slips by
CenSOrs.
DISAFFECTION IN ARMY
kaiscr's Soldiers Realize They
Have No Chance of
Victory.
DISAFFECTION IN ARMY
Special Gable H,spdich to THE srS


Spec'd' tdofe h'Fpdfch to THE srs.
LONDON, Aug 20 England and France
believe Germany vili be unable to en-.
dure anotber MINT. -, u,.. IT,. 49,
"N'' o
'epo'ue"' o' HE SUM- VINO was re-
Gently In France, has seen proof that
the Entente Allies are mapn,fcentiv
eou,ned for r,,,,o o..i
anu Nv
not lnteno 10 allow tho Germans any
respite but to make the winters hard.
ship. do,blv .evere for than, h,, ,.-
.,,,,,r ~
'"' f'eHe''' campaign
The desperate state that Germany has
reached. not only in regard ,o oor,,,v.
ing tho ,.,r h,,, ,,. ..'>.''
"'' 0'' ''oo 'ne reconstruction
-. "er commerce anu industries after
the war. was unwittingly exposed re-
Gently through the unintent!onal laxity
OF the censors. Anxious to prevent reve-
iatiohs or the political situation which
1u'lkerdom ana the military party were
uh"iiilng that the world should know.
the censors tried to placate the radicals
by letting other comments reach print
which are vastly more important to tho
ou.sioe world than the details OF German
political chickering's
stuatiOn Is Revealed.
The situation revealed 10 hrienv tb,s.
When the Reicbstap on nh, 20
adopted the resolution dec,or;na o.
peace without indemnities ana u,i,ho,,t
annexation II smoke wifi tho $50 -
the great majority of tho nation .r,,,r-
for peace, suffering bitterly and drooae
Ing another wlnter ~ war ,,,i,h ~, ~.
snot. o,.s .hu Haheuhess. AZ
perately tired OF fighting and is con.
stantly losing battles because of tbe
belief OF the soldiers that the enemy
now. by means OF superior machinery
Is slaughtering Germans with compara-
tive safety. The army Is becoming
dangerously infected with the feeling
that 1t no longer has a fair chance, be-
cause the fight has become one of Ger
man blood and muscle against the AllIes'
steel and iron.
Chancellor Michaelis knew that the
Rechstag represented both the people
and the army and he felt compelled to
accept the principle Of the peace resolu-
tioii, but when the jingoes learned what
ne mad done they became violently angry
ana the Chancellor was told that he
must recan' because peace without an
heNations or indemnities spelled ruin
Tor Germany.
spent half OF her national wealth In the
war and had lost all claim to the good
WIN "' nahkind and with It the markets
-. ne world Germany could not re-
nap!h'ate hersef without huge indemni-
.les all supplies of manufacturers ma
ter!ais We're exhausted: there was
nel,her money nor credit nor goods to
eAchaAge Tor new supplies.
-
The countrv's fiscal system WAS based
when the empire plunged into hostllit,es
on the plan to finance the war through
loans and at the end of "A short sharn
struggle to exact immense indemnities
or territories sufficient to pay the loans
This explains why Germany has paid
practically all of her war costs up to
this time from the proceeds OF loans
IL was expected that the war would last
only Few months: then, following a
victory. the indemnities would
flow In and more than discharge the
her crushed enemies would he seized ona
Germany would he enriched
No other plan of finance w,s
deemed necessary none was nrovidea
Wien this failed and ths
six months heightened into more tban
three years with costs far ,xceed;n.
the highest figure that any one had
ever imagined, Germany was unable
10 readjust her system.
Every day makes the situation r,ors
desperate and inlpressns more deep,v
upon the ruling hierarchv ths absoIi,to
of forcing victory, no motter
at what cost OF human life, in order tn
exact the indemnities that might max.
rehabilitation possible
Realizing fully this situation, the
rulers OF Germany compelled Chancellor
Michaeus to repudiate his acceptance
OF the Reichstag resolution. His action
promptly caused such an explosion OF
popular wrath from the peace hungry
people mat the chancellor had 10 hedge
ana promise that he would accept the
i'eichs'ag PLATFORM Now neither side
Is sure OF ms real intentions. Probably
ne nlfnSel1 Is equally Uncertain and 10