Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1917-01-23
ENGLAND'S FINANCIAL
STANDING.
LFrom The IrIsh World.


An esteemed and acute correspon-
dent in Providence asks if we arc
sure OF England's financial difficulty
Is England not rather making in
vesiments by lending to her allies
with a view to having them in her
grip after the war. Our corrospon-
dent does we'll to be sceptical, but we
can assure him that all statements
so far published havO rather under
estimated the trouble in which Eng
land is involved Our correspondent
has hit upon England's plan. She
intended to do just what he says.
She figured her part in the war to
be to make some loans to her allies,
to supply small army and to sweep
the seas Of all rival commerce,
whether enemy or neutral But she
miscalculatcd. The Central Powers
proved stronger than she supposed.
France and Russia especially were
much weaker. SO England was per-
force drawn into tho war on great
scale. II is costing her dearly and
bids fair 10 cost her her empire.
Even were it possible for her to come
out OF the war victorious, she would
emerge substantially bankrupt And
she cannot reimburse herself from
her allies. for they, too, Will be PEN
nilcss. Tho most she could do would
be to make poor little Belgium" pay
for her defense with her colonies.
We have said that all estimates Of
the cost of the war to England are
understatements. England is dcs
perately seeking loans everywhere-
from her own people, from US. from
the world at large. She has gotten
to tho point where Bonar Law has
threatened forced loan, coniisca-
tion. A borrower naturally tries 10
present his affairs to prospective
lenders in the best possible light.
Taking the character OF the English
Government into account, VIC may,
therefore, expect English lies TO
show how economically she is con-
ducting the war. Hero are the
figures as given by our Federal Re-
serve Board: In March, 1914. the
total debt of England amounted to
G707 $4,000. BY November, 1915,
it had increased to G3,250. 900,
an increase OF f2,542, 100000, or let
us say, 100000. a new loan
of G400, 100000. (s2,000,000,000
is in process OF ilotation.
These figures are so enormous
that at first they convey no clear inn
preston. For comparison 1t may be
stated that the increase in England's S
debt during two and half years Of
war is about equal to seven times
the total interest and the now in
! terest bearing debt of the United
States accumulated in one hundred
and forty years. The Board states
England's bonus to her allies at be-
tween 100000 and G700.000.-
| 600. large sum truly but only about
one-fourth OF her total expenditure.
In a typically Dragging British ar
| ticle In the Boston News Bureau for
| January 10, these figures are con-
! frmed. According to the Bureau
/ England has spent from $15.000,-
900 900 to $4,000, 100000 and "ad-
yanced to her war allies three thou
/ sand million dollars, or three times
the national debt Of the United
States"
Now let us turn to her chief allies
and see how well fitted they will be
to repay after the war. From August
1, 1914, to August 81, 1916, the in
crease in the French debt, according
tot he Federal Reserve Board.
amounted to 40.192 600 900 francs.
or over S8.00O,000,000 Since
August 81. 1916. the debt has been
further increased by $500, 900
francs, and there is also an unfunded
debt of about 100000, 900. In all,
therefore, the French debt has in
creased about $9.50O,000.000 The
Russian debt, from January, 1914, TO
J January, 1917, increased from
i 9.8SS, 100000 rubles to 25,230,000,-
600 rubles. an increase of 1892
100000 rubles, or say S7,500.000,-
600 The Russian interest charge
now amounts to 6G9,410,000 rubles.
II is clear that France and Russia
have their own troubles and will be
| in no position to aid England after
tho war The position Of the minor
allies is OF course, far worse. eng
land. if she were successful. could
Qynpcf no fccOmnoneQ financially